Standard & Poor’s (S&P) has reportedly withdrawn its rating for Adani Transmission Ltd (ATL).
ATL has a BBB- or an investment-grade rating.
A Bloomberg report said the withdrawal was done at the company’s request. BBBis the lowest investment grade rating. The sovereign rating of India is also BBB- with a stable outlook. Most companies, including from the public sector, are rated on a par or below this sovereign rating.
Adani Green Energy Ltd — the group’s renewable energy arm — also has ratings equal to the sovereign.
Shares of Adani Transmission on Thursday ended 2.18 per cent lower at Rs 3,114.80 on the BSE in a weak market.
The development comes weeks after Fitch arm CreditSights said it remains concerned about the Adani group’s leverage. It said the group’s debt levels are elevated on an overall basis.
Earlier, it had noted that the group has been investing aggressively across both existing and new businesses, predominantly funded with debt, resulting in elevated leverage and solvency ratios. However, the Adani group did not agree with this view.
