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    S&P upgrades outlook on Adani Transmission to stable; removes from watch negative

    S&P upgrades outlook on Adani Transmission to stable; removes from watch negative

    S&P upgrades outlook on Adani Transmission to stable; removes from watch negative
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    By CNBC-TV18  IST (Published)

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    S&P on Tuesday has upgraded the outlook on Adani Transmission Ltd (ALT) to stable, following the infusion of Rs 800 crore in an equity-like shareholder loan.

    New York-based credit rating agency Standard & Poor (S&P) on Tuesday has upgraded the outlook on Adani Transmission Ltd (ALT) to stable, following the infusion of Rs 800 crore in an equity-like shareholder loan.
    Simultaneously, all ratings have been removed from CreditWatch, on which they were placed on March 5, 2019, S&P said.
    “The stable outlook reflects our expectation of steady operating performance with stable tariff collections at the obligor group over the next 12-24 months. We also expect ATL to exercise greater financial discipline such that its FFO-to-debt ratio is above 15 percent on a sustainable basis,” S&P said in a statement on Tuesday.
    The agency said, "We could lower the rating if ATL's financial position deteriorates again such that its FFO-to-debt ratio falls below 15 percent. This could happen if management again allows the cash from the obligor group to be used to fund investments outside the obligor group or pay sizable dividends, resulting in adjusted net debt above Rs 60 billion."
    Adani Transmission's December 2018 quarter net profit soared 89 percent after considering profits in the corresponding period of the previous fiscal after removing a one-time gain.
    The company's net profit without factoring in the one-time gain dropped 77.52 per cent to Rs 189.22 crore in the quarter ended on December 31, 2018.  The total income of the company rose to Rs 2,921.07 crore in the third quarter this fiscal from Rs 1,806.50 crore a year ago.
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