Crisil Upgrades Adani Green RG1 to Positive Outlook
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Synopsis
Crisil Ratings has upgraded the outlook for Adani Green Restricted Group 1's long-term bank facilities to 'positive' from 'stable', reaffirming a 'Crisil AA+' rating, reflecting strong revenue visibility and performance exceeding expectations.
Key Takeaways
- Crisil revises outlook to positive.
- AGEL RG1 includes three SPVs.
- Performance surpasses P90 levels.
- Financial health maintained with strong coverage ratio.
- Operational capacity grows by 37%.
New Delhi, Feb 6 (NationPress) In light of robust revenue forecasting, Crisil Ratings has updated its outlook for the long-term bank facilities and non-convertible debentures of Adani Green Restricted Group 1 (RG) to "positive" while reaffirming the rating at 'Crisil AA+'.
'AGEL RG1' is composed of three special purpose vehicles (SPVs) – specifically Adani Green Energy UP Ltd, Prayatna Developers Private Limited, and Parampujya Solar Energy Private Limited – collectively referred to as 'AGEL RG1'.
The adjustment in outlook reflects the group’s actual generation consistently exceeding P90 levels and the successful refinancing of $500 million bonds, as noted by Crisil.
"Adani Green Restricted Group 1 achieved a performance above the P90 plant load factor in fiscal 2024 and calendar year 2024, leading to expectations of ongoing superior performance and enhanced debt servicing capabilities in the future," the note stated.
The rating underscores strong revenue visibility, characterized by long-term power purchase agreements at competitive tariffs.
"These advantages are somewhat balanced by exposure to the risks associated with operating solar energy assets and unfavorable foreign exchange fluctuations," the note added.
The financial risk profile is anticipated to remain robust, as indicated by a strong debt service coverage ratio across the 18-year term of the US senior secured notes, according to the rating agency.
The liquidity position is further bolstered by a debt service reserve account covering six months of debt obligations without relying on project assets.
Adani Green Energy's consolidated net profit surged by 85 percent year-on-year in the third quarter of fiscal 2025 (Q3 FY25), with the bottom line reaching Rs 474 crore, up from Rs 256 crore in the same quarter of the previous year, as per a stock exchange disclosure.
The operational renewable energy (RE) capacity expanded by 37 percent YoY to 11.6 GW, maintaining its status as India's largest.
The company accounted for 15 percent of the nationwide utility-scale solar installations and 12 percent of wind installations in CY24.
As stated by Amit Singh, CEO of Adani Green Energy, "We are progressively developing the largest RE facility in Khavda, Gujarat, alongside major projects in Rajasthan and other locations, all supported by well-coordinated transmission planning."
