S&P downgrades outlook for Adani Mumbai discom to ‘negative’
S&P Global Ratings has downgraded the outlook for Adani Electricity Mumbai (AEML) to negative from stable, mainly over apprehensions that the leverage levels of Adani Transmission (ATL), AEML’s holding company, will rise over the next two years as it undertakes significantly higher spending to grow its asset base.
The agency has retained ‘BBB-‘ credit rating on AEML. Obligations rated ‘BBB’ by S&P exhibits adequate protection parameters, but adverse economic conditions are more likely to weaken their capacity to meet financial commitments. AEML runs the power distribution business in Mumbai.
