New Delhi, March 10 (IANS). Fitch Ratings has retained the Long Term Foreign and Local-Karenie Default Ratings (IDR) of Adani Energy Solutions Limited (AESL) on ‘BBB-‘ and removed the company from the ‘rating watch negative’ list.
The global ratings agency said, “We believe the risks associated with the group’s liquidity and funding requirements have decreased.”
Since American action, AESL has shown access to adequate funding and has received Rs 51 billion from onshore and offshore banking facilities.
Adaani Group’s other company, Adani Green Energy Limited (AGEL), has also refused the construction linked facility of $ 1.1 billion in March.
The International Ratings Agency said, “AESL’s high asset availability was at 99.7 percent in the first nine months of the current financial year. It is close to the levels of FY 24 and is above all regulatory benchmarks.”
AESL’s credit profiles benefit from India’s stable and favorable regulatory environment.
The report said, “We hope that its transmission in the medium period will maintain a large stake in EBITDA. However, its smart metering business will continue to contribute to the contribution.”
The note stated, “We estimate that capital expenditure will increase to Rs 175 billion per year in FY 2025 and FY 2026. It was Rs 40 billion in FY 2024. This capital expenditure will be done on construction projects and smart metering business. AESL has made a bid of 22.8 million smart meters in five Indian states under design, construction, finance, ownership, operation and transfer structure.”
Last month, global brokerage Elara Capital introduced coverage on Adani Energy Solutions Limited (AESL) and gave it a ‘bye’ rating and shared target price of Rs 930, which is 37 percent higher than the current market price.
Elara said that there may be a strong growth in transmission, distribution and smart meter businesses of Adani Energy Solutions. Transmission ABITDA FY 27 is estimated to double to Rs 76 billion in FY 27.
-IANS
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