S&P gave big relief to Adani, said the debt of this company is safe

Global rating agency S&P (S&P) has given great relief to the Adani Group, which is facing all-round troubles. The rating agency has taken Adani Group company Adani Green Energy Limited out of watch and retained its rating. With this, the confidence of investors in this company of Adani Group can be restored.

Adani’s net worth decreased so much

Adani group is in a lot of trouble these days. American short seller company Hindenburg Report released a sensational report on 24th of last month. In the report, many serious allegations were made against the Adani group. Since then, all the shares of Adani Group are going through a period of heavy decline. Shares of some companies have lost more than 80 percent in the last one month. On the other hand, the MCAP of Adani Group companies has decreased by Rs 12 lakh crore since then. Gautam Adani has also had to bear the brunt of this. Gautam Adani, who was once among the three richest in the world, has now dropped out of the top-30 as well.

S&P made changes last year

However, S&P had placed Adani Green Energy Limited under watch even before the Hindenburg report came out. The agency had published revised eligibility for rating project finance transactions on December 14 last year and placed Adani Green Energy (AGEL RG2) under observation. Now the agency has completed its review. Subsequently, S&P believes that there is no need to change the rating of Adani Green Energy even after the revised eligibility.

How much is the debt on companies

S&P has maintained ‘BB+’ rating on Adani Green Energy. This means Adani Green Energy’s debt is secured and this development may help restore the confidence of jittery investors in the Adani group. AGEL RG2 consists of three operating entities Wardha Solar Maharashtra Ltd (Wardha Solar Maharashtra Ltd), Kodangal Solar Park Ltd (Kodangal Solar Park Ltd) and Adani Renewable Energy Rajasthan Ltd (Adani Renewable Energy RJ Ltd). The three companies jointly issued and guaranteed $362.5 million in senior secured fixed-rate 20-year bonds.

S&P gave this statement

Together these three companies have a portfolio of 10 solar assets in two states of the country with a total capacity of 570 MW. S&P said that AGEL RG2’s debt is fully secured. Apart from this, the cash flow is sufficient to repay the loan installments along with the operating expenses. Earlier, Fitch Ratings had retained the ‘BBB-‘ rating on Adani Transmission Limited’s $400 million senior secured notes.