Moody's gives Adani Transmission and Electricity a 'stable' thumbs up
Moody's just upgraded its outlook for Adani Transmission Step-One Ltd (ATSOL) and Adani Electricity Mumbai Ltd (AEML) from negative to stable, saying their finances look solid over the next 12-18 months (roughly through mid-2027).
Both companies kept their Baa3 ratings, which basically means they're considered investment-worthy.
Parent company backing keeps things steady
ATSOL's ratings are mainly safe because its parent company, Adani Energy Solutions Ltd (AESL), guarantees its bonds, while AEML's ratings reflect its own predictable regulated cash flows and recent deleveraging.
AESL's regulated business helps keep cash flowing for ATSOL even when spending goes up, while AEML's credit profile is supported by its own regulated operations.
Why it matters: Legal clouds still linger
Moody's is watching US court cases involving Adani Group execs.
If things go badly in court, it could make borrowing money tougher for the group—so while the outlook is better now, there are still risks ahead.