Rating Agency Crisil Ratings has raised its assessment of Adani Power's bank loan facilities worth Rs 38,000 crore to 'AA-' from its previous rating of 'A', citing significant improvements in the company's business and financial risk profile.

According to Crisil Ratings, the upgrade reflects a robust enhancement in Adani Power's business and financial risk profiles. This improvement is attributed to better operational performance, particularly with the timely establishment and scaling up of the Godda power plant (1.6 GW) and Mahan power plant (1.2 GW). Additionally, the full recovery of pending regulatory dues related to fuel costs under existing power purchase agreements (PPAs) has contributed to this upgrade.

Furthermore, the completion of most regulatory investigations into Adani Group, with only two remaining allegations under review, adds to the positive outlook. These ongoing investigations are expected to conclude within the next three months, according to the ratings agency.

Adani Power has successfully recuperated a significant portion of pending regulatory dues, including carrying costs and late payment surcharges, between April and October 2023. This recovery followed a favorable ruling by the Supreme Court of India in March and April 2023.

Moreover, Adani Power's consistent receipt of monthly receivables, including recurring regulatory claims, has bolstered its operational cash flow. The company's operational performance remains strong, characterized by robust plant load factors (PLFs) and healthy operating margins.

In fiscal 2023, Adani Power exceeded expectations with an operating earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 10,041 crore. Similarly, for the first half of fiscal 2024, it reported Rs 7,926 crore in EBITDA, demonstrating continued positive performance compared to Rs 10,280 crore in fiscal 2022.

How Adani Hails Shri Ram Janambhoomi Mandir, It's The Gateway to Enlightenment, Peace