S&P affirms rating of Adani Green, removes from under observation on ‘fully’ secured debt’

Wardha Solar (Maharashtra), Kodangal Solar Park, and Adani Renewable Energy are members of Adani Green’s limited group 2. (RJ).

Despite instability in the Adani Group, S&P Global has maintained its “BB+” rating on Adani Green Energy with a stable outlook. Additionally, the American credit rating firm has withdrawn the company from under-criteria inspection. S&P anticipates that the company’s restricted group will assist in meeting repayment commitments due to its robust reserving mechanism.

Wardha Solar (Maharashtra), Kodangal Solar Park, and Adani Renewable Energy are members of Adani Green’s limited group 2 (RJ).


The RG2 are co-issuers and co-guarantors of Adani Green’s $362.5 million in green bonds with a 20-year maturity and a weighted average life of 13.47 years.

According to media reports, S&P noted that RG2’s debt is completely guaranteed by cash flow waterfalls that prioritise operational expenses and debt service during disruptions. In addition, given their ring-fenced assets, S&P feels the arrangement adequately safeguards investors.

S&P says AGEL RG2 is not currently impacted by the bigger Adani Group’s governance concerns and financial issues.

S&P placed Adani Green under “criteria surveillance” on December 14, last year.

Significantly, the S&P criterion adjustment has no influence on the rating agency’s assessment of the project’s creditworthiness, as it stated on Friday.

This comes after Fitch Ratings confirmed Adani Transmission’s limited group notes at “BBB-” with a stable outlook the day before.

Adani Transmission’s RG1 includes six co-issuers, including Barmer Power Transmission Service Limited, Chhattisgarh-WR Transmission, Hadoti Power Transmission Service, Raipur-Rajnandgaon-Warora Transmission, Sipat Transmission Limited, and Thar Power Transmission Service, as well as one non-issuing SPV, Adani Transmission (Rajasthan) Ltd. (ATRL).

Fitch also stated in a statement that, owing to the ringfenced structure of these assets, ATL RG1’s credit assessment is not immediately affected by the alleged malpractices at India’s Adani Group noted in Hindenburg Research’s study. Offshore bondholders benefit from a strong cash flow waterfall mechanism as well as covenants that limit cash upstreaming to shareholders and limit debt. ATL RG1 also has a 30-year, mostly amortising bond.

Adani Green Energy’s share price finished at Rs. 486.75 a share on the BSE, a 5% lower circuit. Similarly, Adani Transmission finished at a 5% lower circuit on Friday, at Rs. 711.90 a share.