The proposed foreign currency denominated bonds issuance by Adani Green Energy has been awarded a Ba3 rating by Moody’s with a stable outlook, the firm announced on Friday. The proposed USD senior secured notes to be issued by Adani Green Energy Ltd (AGEL) have been awarded a Ba3 rating by Moody’s, with a ‘stable’ outlook.
Obligations rated ‘Ba’ on Moody’s ratings scale are considered speculative and exposed to significant credit risk.
The revenues from the USD notes will primarily be used to fund the construction of utility-scale renewable energy projects by AGEL’s direct and indirect subsidiaries.
Moody’s noted that if AGEL maintains a consolidated (CFO Pre-WC)/debt ratio of more than 6%, the rating could be upgraded over time.
According to the rating agency, the rating might be lowered if AGEL’s credit profile continues to deteriorate, possibly due to poor operational performance, a delay in the commissioning of new projects, or aggressive acquisitions and capital spending that exceed Moody’s estimates.
AGEL’s consolidated net profit increased tenfold to Rs 219 crore in the June quarter on a year-over-year basis, owing to greater revenues.
Total income grew to Rs 1,079 crore in the quarter under review, up from Rs 878 crore a year ago. SoftBank Energy’s acquisition of a high-quality renewable energy portfolio has bolstered the company’s position in India.