Adani group leverage elevated: Fitch unit corrects Adani Transmission, Power’s EBITDA, debt estimates

Fitch arm CreditSights on Thursday corrected EBITDA, gross debt estimates for Adani Transmission, Power, respectively, after it discovered calculation errors made by them. Its previous report highlighted that the Gautam Adani-led group has pursued an aggressive expansion plan that has pressurised its credit metrics and cash flows. Adani group increasingly venturing into new and/or unrelated businesses, which are highly capital intensive has also been raising concerns that execution oversight may be spread too thin, the research firm said. CreditSights clarification comes a day after the conglomerate refuted the claim made by the Fitch arm’s previously. On Wednesday, Gautam Adani’s group cited an improved net debt to operating profit ratio and more than halving of loans from public sector banks to allay concerns about it falling into a debt trap.