S&P raises Adani Electricity Mumbai's outlook from 'Negative' to 'Stable'

IHC investment in parent Adani Transmission Ltd to improve leverage and credit quality

Global rating agency Standard and Poor’s today upgraded outlook on Adani Electricity Mumbai Ltd (AEML) from “negative” to “stable” on expectation of an improvement in credit quality of its parent Adani Transmission Ltd (ATL).

The proposed equity infusion from a strategic investor, International Holding Co. (IHC), into ATL will improve leverage and credit quality of the consolidated ATL group (which includes ATL and all its subsidiaries).

IHC, the investment arm of the Abu Dhabi royal family, seeks to invest about Indian rupee Rs 3,850 crore ($500 million) in ATL for an equity stake of 1.41 per cent on a post-issuance basis. The