Adani Electricity Mumbai Achieves AAA Credit Rating Milestone

Adani Electricity Mumbai Ltd receives a AAA credit rating, marking a significant achievement as India’s first privately-owned power distributor to attain such a status. Strong regulatory support, thorough deleveraging, and stable cash flows under a cost-plus regulatory framework bolster the company's financial standing.

Adani Electricity Mumbai Ltd has achieved a significant milestone, becoming the first privately-owned power distribution company in India to receive a coveted AAA credit rating, equivalent to the sovereign score, as per reports by India Ratings.

The rating accolade is attributed to robust regulatory support, enhancing credit metrics, and continuous deleveraging, supplemented by stable cash flows under a cost-plus regulatory framework, as stated by India Ratings. Since its acquisition from Anil Dhirubhai Ambani Group in 2018, Adani Electricity Mumbai Ltd has remarkably doubled its asset base, surpassing Rs 10,000 crore, fueled by persistent capital expenditure catering to Mumbai's escalating electricity demand.

Further insights from India Ratings underline the importance of timely tariff orders by the Maharashtra Electricity Regulatory Commission, ensuring full recovery of past regulatory assets and maintaining consumer tariffs through shrewd financial management. The company also boasts improvement in operational metrics with distribution losses lowered to 4.3% and plans to upscale renewable energy sources to 60% by 2027, a step towards making Mumbai a global leader in green power usage.

(With inputs from agencies.)