Three Adani Firms Among Top-Rated Indian Corporates On Major Ratings Upgrade
Morningstar Sustainalytics ESG rating firm moved Adani Power to medium risk from high risk, and Adani Energy Solutions to low risk from medium risk.
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Adani Power Ltd., Adani Energy Solutions Ltd., and Adani Green Energy Ltd. are Morningstar Sustainalytics ESG ratings' top rated Indian corporates in their respective sectors after a major upgrade. The upgrade from the US-headquartered rating agency reaffirmed the Adani Group's stability and transparency by lowering risks across the board, the Group said in a release.
Morningstar Sustainalytics ESG rating firm moved Adani Power to medium risk from high risk, and Adani Energy Solutions to low risk from medium risk. The US-headquartered firm also lowered Adani Green Energy's rating.
The rating upgradation place Adani Green Energy and Adani Energy Solutions as seventh and eighth ranking respectively worldwide among electrical utilities, the press release said. Adani Power's risk score of 29.2 outperformed Tata Power Ltd., NTPC Ltd., JSW Energy Ltd., NLC India, and Torrent Power, all of which remain in the higher-risk band.
Meanwhile, Adani Green Energy's risk score of 11.8 stands ahead of ReNew at 13.1 and far ahead of Waaree Renewable at 27.7. Adani Energy Solutions's risk score at 19.9 leads over Power Grid Corp of India and CESC, while the sectoral average remains at a much higher 36, the press release said.
A lower ESG rating shows that the company is less vulnerable to the impact from regulatory changes, social unrest, or environmental challenges, the press release said. This means greater stability, responsible management, and the promise of sustainable long-term returns for investors.
Morningstar Sustainalytics ESG conducts its assessment independently based on publicly available information like disclosure from the companies, the press release said. The rating upgrades followed the dismissal of Hindenburg Allegations from the Securities Exchange Board of India.
The Adani Group said in the press release, "The consistent improvement in the ratings of the three Adani energy businesses reinforces the recent SEBI findings that dismissed a short-seller’s allegations, which had already been disproved at multiple regulatory and judicial forums."
