Adani Power Limited’s bank loan facilities have been rated ‘A’ with a secure outlook earlier.
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Crisil Ratings has upgraded its scores on Adani Power Limited’s (APL) ₹38,000 crore of bank loan facilities to ‘AA-‘, saying the enterprise and monetary threat profile of the corporate has seen “strong improvement”. The loan facilities have been rated ‘A’ with a secure outlook earlier.
“The rating upgrade follows the strong improvement in the business and financial risk profiles of APL,” Crisil Ratings mentioned in a report.
“The upgrade is driven by better-than-expected operating performance backed by timely commissioning and ramp-up of the Godda power plant (1.6 GW), Mahan power plant (1.2 GW), full recovery of pending regulatory dues related to claims for fuel costs as pass-through under change in law clauses of existing power purchase agreements (PPAs) and continued improvement in receivables,” it mentioned.
“The rating also factors in the completion of most of the regulatory investigations into Adani Group. Regulatory investigations in two remaining allegations are under way and are expected to be completed over the next three months,” the scores company mentioned.
It additional mentioned that APL has recovered a majority of pending regulatory dues, together with carrying prices and late fee surcharge (LPS) between April and October 2023 from counterparties, post-resolution of the matter in APL’s favour by the order of Supreme Court of India in March and April 2023.
“The company has been receiving monthly receivables on a timely basis, including recurring regulatory claims, supporting its operating cash flow. The operating performance of APL has been strong with robust plant load factor (PLF) and healthy operating margin,” it mentioned.
The firm had better-than-expected working earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) of ₹10,041 crore for fiscal 2023 and ₹7,926 crore for the primary half of fiscal 2024 (₹10,280 crore in fiscal 2022).
