Adani Green Stock Nosedives Further As S&P Affirming Rating Fails To Cheer Investors

Adani Green Energy shares were in the red on Monday even as S&P Global removed the company from under-criteria observation.

What Happened? United States-based credit ratings agency S&P Global on Friday affirmed its rating on Adani Green Energy at ‘BB+’ with a stable outlook while also removing the company from its list of companies ‘under observation’.

The agency expects the company’s restricted group to help meet repayment obligations due to its strong reserving mechanism.

Adani Green’s restricted group — also referred to as RG2 or restricted group 2, includes three subsidiaries namely Wardha Solar (Maharashtra), Kodangal Solar Park, and Adani Renewable Energy. The said subsidiaries are the co-issuers and co-guarantors of Adani Green’s $362.5 million (₹3,005.36 crore) in green bonds which has a maturity of 20 years.

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S&P claims that the restricted group’s debt is fully secured with cash flow pools which emphasise operating expenditure and debt service in times of financial turmoil.

It is worth recalling that the agency published its revised criteria for rating project finance transactions on Dec. 14, 2022 and placed Adani Green Energy under what it likes to call ‘criteria observation’.

The agency on Friday claims to have completed its review of the company’s RG2 and “believes the revised criteria does not impact our assessment of the project’s creditworthiness”.

The development in S&P Global’s affirmation of Adani Green arrives a day after Fitch Ratings also affirmed Adani Transmission’s restricted group’s notes at ‘BBB-‘ with a stable outlook.

Price Action: Adani Green Energy Ltd. shares were trading 4.99% lower at ₹462.45 shortly after markets opened for trading on Monday.

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