Fitch Ratings Affirms BBB-Ratings On Adani Transmission's Senior Secured Notes

Fitch Ratings has affirmed its BBB- ratings with a stable outlook on $400 million senior secured notes issued by Adani Transmission Limited (ATL).

On the rationale behind the move, the rating agency said the credit assessment of the group reflects the project companies' availability-based revenue under a supportive regulatory framework, with low technical complexity, reflected in high availability levels and operating performance that we expect to remain stable.

"Fitch Ratings has affirmed the 'BBB-' ratings on the $400 million senior secured notes issued by the restricted group of India-based Adani Transmission Limited (ATL, BBB-/Stable). The Outlook is Stable," it said in a statement on Thursday.Fitch projects an average debt-service coverage ratio (DSCR) of 1.48x, with a profile DSCR of 1.30x between the financial years ending March 2027 (FY27) and FY33 under its rating case. 

The restricted group's financial profile is also stronger than that commensurate with a 'BBB-' rating for this portfolio of assets, reflecting considerable rating headroom at the current level. The restricted group (ATL RG1) includes six co-issuers - Barmer Power Transmission Service Limited, Chhattisgarh-WR Transmission Limited, Hadoti Power Transmission Service Limited, Raipur-Rajnandgaon-Warora Transmission Limited, Sipat Transmission Limited and Thar Power Transmission Service Limited - and one non-issuing SPV, Adani Transmission (Rajasthan) Ltd (ATRL).