Fitch removes Adani Energy Solutions from negative watch in first rating upgrade since US indictment

New Delhi [India], March 10 (ANI): Fitch Ratings has removed Adani Energy Solutions from 'Rating Watch Negative' and affirmed its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-'.
In a statement Monday, Fitch affirmed the said ratings, noting that the Adani group "has demonstrated adequate funding access" since the US indictment of certain board members of another group entity, Adani Green Energy Limited (AGEL), on 20 November 2024.
"We believe the risks associated with the group's liquidity and funding requirements have moderated," the global rating agency said in its statement.
However, the outlook is negative to reflect Fitch's view that the proceedings and outcome of the US investigations could reveal that the group's corporate governance practices are weaker than "we expected and lead to negative rating action in the near to medium term."
Fitch said it would monitor the investigations for any evidence of weakness in the entities' governance practices and internal controls and the impact on Adani Energy Solutions' financial flexibility.
For Adani Energy Solutions, the rating agency said the Adani Group company's credit profile benefits from India's stable and favourable regulatory environment.
"We expect revenue for its transmission assets to continue contributing a large majority of EBITDA in the medium term, even as the contribution from its smart metering business increases," said the rating agency in its statement.
Adani Energy Solutions is one of India's largest private-sector power transmission and distribution companies.
It has transmission projects across 14 Indian states and owns 74.9 per cent of Adani Electricity Mumbai Limited, a power transmission and distribution utility covering 85 per cent of Mumbai. (ANI)