CRISIL Reaffirms Ratings For Adani Group's Solar, Wind Power Units

CRISIL reaffirmed the ratings for Adani Group’s renewable energy (RE) projects soon after GQG Partners invested $1.9 billion in some companies in the bailiwick.

Among the RE projects, the solar enterprises are in Andhra Pradesh, Karnataka, and Rajasthan, and wind power units are in Madhya Pradesh.

The rating action factors in satisfactory operating performance by the asset, backed by a strong counterparty risk profile, adequate liquidity, and low debt, the rating agency said in a statement.

Further, it has taken note of the recent raising of funds from US global equity boutique GQG Partners through equity stake sale.

On March 2, Adani Group said GQG Partners invested in Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises.

In addition, over the past one month, various Adani Group companies received debt disbursements/rollovers amounting to over Rs 5,000 crore in accordance with their earlier agreed loan sanctions.

There was huge volatility in shares of listed Adani companies after US-based short-seller Hindenburg’s research report alleging irregularities in the group was made public on January 24.

The ratings reflect above-average managerial and financial support (if required) derived from being part of Adani Group, a strong counterparty risk profile, and adequate liquidity buffers.

These strengths are partially offset by dependence on favourable climatic conditions for power generation.

The agency said it continued to monitor developments with respect to the group. Any adverse regulatory/government action, emerging issues around corporate governance, or a sustained decline in the group’s resource-raising capabilities from banks or capital markets will be looked at.

The agency reaffirmed the ratings for solar power companies SBSR Power Cleantech Eleven (“A-”), Adani Solar Energy Jodhpur Three (“A”), Adani Solar Energy Jodhpur Four (“A”), Adani Solar Energy Ka Nine (“A”), and Adani Solar Energy Ap Seven (“A”).

The rating agency reaffirmed “A-” for long-term loans of Adani Wind Energy MP One. The company is part of Adani Green Energy (AEGL). It was formed to develop a wind asset with a cumulative capacity of 326.7 Mw, located in Dhar, Ratlam, and Ujjain in Madhya Pradesh, and was commissioned in September 2022.

The wind energy unit has signed a power-purchase agreement (PPA) with Solar Energy Corporation of India Ltd (SECI) at a tariff of 2.83/kWh for 25 years. Thus, it remains shielded from any offtake risk.