Fitch lifts Adani Transmission view to stable

Fitch Ratings said it revised Adani Transmission Ltd.'s outlook to stable from negative.

The agency also said it affirmed the company's long-term foreign- and local-currency issuer default ratings, along with the rating on its $500 million 4% senior secured notes due 2026 at BBB-.

The outlook revision follows a review of Adani Transmission's financing of its acquisition of Reliance Infrastructure Ltd.'s integrated power generation, transmission, distribution and retail business in Mumbai, Fitch said.

Adani's headroom under its ratings has shrunk with tighter-than-expected coverage metrics over next few years because 85% of the acquisition is funded via debt, the agency said.

The ratings reflect the company's diversification across the electricity distribution business with exposure to retail customers, Fitch said.

The ratings also consider its established track record in executing and operating transmission projects, the agency said.

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