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Moody's affirms Baa3 rating on senior secured bond of Adani Transmission

The outlook remains negative

Moody's Investors Service has affirmed an investment grade rating of Baa3 on senior secured bond of Adani Transmission (ATL). The outlook remains negative. According to Moody's global rating scale, obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess speculative characteristics. Thus, Baa3 is an investment grade rating and a negative outlook indicates downward pressure on the issuer.

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.

Adani Transmission is a holding company. The company operates as a power transmission company. It is engaged in transmission of electric energy and trading of castor oil.