S&P assigns stable outlook to Adani Transmission

S&P Global Ratings said today that it had assigned its 'BBB-' long-term corporate credit rating to Adani Transmission Ltd (ATL), a power transmission company.
"The outlook is stable. We also assigned our 'BBB-' long-term issue rating to the company's USD 500 million 4 per cent senior secured notes due 2026 and Indian rupee (INR)-denominated 5 billion 9.1 per cent senior secured notes due 2021," it said in a statement.
"The rating on ATL reflects our expectations of stable cash flows, driven by a favorable regulatory environment, the company's power transmission business, and its good operating record," said S&P Global Ratings credit analyst Mehul Sukkawala.

"However, the company is dependent on two key assets, exposed to somewhat weak counterparties, and has a short track record of operations," it said.
ATL faces asset concentration, considering two transmission lines account for about 90 per cent of cash flows. In addition, the company is exposed to higher risk from customer concentration, with Maharashtra state accounting for about 60 per cent of the company's cash flows, it added.
Meanwhile, Fitch Ratings in a separate statement said it has assigned Greenko Investment Company's USD 500 million 4.875 per cent senior notes due 2023 a final rating of 'B+', with a Recovery Rating of 'RR4'.

The notes are guaranteed by Greenko Energy Holdings (GEH, B+/Stable), Fitch said in a statement
The Fitch's 'B' ratings indicate that material credit risk is present.
GIL is a subsidiary of GEH, which is involved in hydro and wind power generation in India. GEH has about 1GW of operational capacity and another 1GW under construction and development.