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Moody's Investor Service today said Adani Transmission's rating is not immediately affected by its announcement about talks with Reliance Infrastructure for acquiring certain assets.
Adani Transmission Ltd's (ATL) Baa3 senior secured rating is not immediately affected by its announcement that it has entered into a period of exclusivity with Reliance Infrastructure for proposed acquisition of certain power generation, transmission and distribution assets of Reliance, the ratings agency said in a statement.
Moody's is not taking any rating action at this stage given that no binding offer has been made and the uncertainty around the ultimate final terms of any potential offer, it added.
"To the extent that a successful transaction emerges, the impact on ATL's credit profile will likely be negative, given the significance of the transaction and the likelihood that it would be substantially debt funded," Moody's Vice President and Senior Analyst Abhishek Tyagi said.