"Moody's Investors Service has affirmed the Baa3 senior secured bond ratings of ATL. The outlook remains negative," a Moody's statement said.
According to the statement, the servicing of ATL's bonds is supported by an obligor group that includes ATL and two of its fully owned subsidiaries --Maharashtra Eastern Grid Power Transmission Company and Adani Transmission (India) Ltd -- which operate four transmission lines of more than 5,000 circuit kilometers.
The negative outlook on the senior secured bond ratings reflects the likely weakening in ATL's financial metrics as a result of the incremental debt it would require to complete its substantial capital expenditure programme over the next four to five years.
In another statement, Moody's said it has affirmed the Baa3 senior secured bond rating of Adani Electricity Mumbai Ltd (AEML).
The outlook remains negative, it added.
AEML owns and operates an integrated utility business in Mumbai, which is regulated by Maharashtra Economic Regulatory Commission (MERC), the state regulator for the power industry in Maharashtra.
The servicing of the rated USD bond is supported by an obligor group that includes AEML and Power Distribution Service Ltd (PDSL), a majority owned subsidiary of ATL, set up primarily to provide asset management services to AEML.
"The negative outlook continues to reflect the potential for downgrade if India's sovereign rating (Government of India, Baa3 negative) is downgraded, given AEML's domestic focused business," says Spencer Ng, a Moody's Vice President and Senior Analyst.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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