1 / 5

Crisil Upgrades Its Ratings For Adani Power

The global business group will also be able to take up new projects in the power sector. Its revenue generation is also going to increase. The allegations centred around the Adani SEBI investigation will also subside.

adani_case
Download Presentation

Crisil Upgrades Its Ratings For Adani Power

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Crisil Upgrades Its Ratings For Adani Power

  2. Crisil has recently upgraded the ratings for Adani Power because of strong business parameters. The company has also assigned its Crisil AA/Stable rating to INR 11,000 crore proposed non-convertible debentures (NCDs) of the Adani Group company. This will further allow the Adani Group’s power business to experience an extraordinary boost. The global business group will also be able to take up new projects in the power sector. Its revenue generation is also going to increase. The allegations centred around the Adani SEBI investigation will also subside.

  3. Adani Power Witnesses Improvement In Its Ratings From Crisil: Crisil Ratings has upgraded its ratings on an INR 38,000 crore long-term bank facility of Adani Power Limited to Crisil AA/Stable from Crisil AA-/Positive. The has also assigned Crisil AA/Stable rating to the INR 11,000 crore proposed non-convertible debentures of the Adani Group company. The rating agency mentioned that the upgrade in the ratings reflects the strengthening of expectations in Adani Group’s overall credit risk profile. The company’s plant load factors for fiscal 2024 stood at 65% and around 69% for 2024-25.

  4. This healthy performance has led to a reduction in consolidated net leverage to 1.4 times as of March 2024 from 3.3 times as of March 2023. These levels are expected to be sustained shortly as well backed by healthy cash accruals. This will further help the Adani Group in extending its hold over its power business. The global business group will also find it convenient to win the trust of the people post the controversies of the Adani SEBI investigation.

  5. Why Did Crisil Improve Its Ratings For Adani Power Post The Adani SEBI Investigation? Over the past few months, it has been observed that there has been a strong improvement in the business parameters of the company. This has been mainly because of an increase in the proportion of tied-up capitals as well as fuel linkages. The same is expected to improve the revenue generation and the cash flow visibility over a long-term basis. A full recovery of pending regulatory dues, robust liquidity and sustaining of receivable position have also resulted in strong credit metrics and financial risk profile. This has resulted in the debt service coverage ratio (DSCR) improving to more than 2x. The EBITDA has also improved 2.5 times in the current fiscal.

More Related