S&P Global Ratings withdrew its rating for Adani Transmission Ltd., ending its near-investment grade rating at the company’s request.
The withdrawal of the BBB- rating follows restructuring at the company, part of the Gautam Adani conglomerate, Asia’s richest man. The overhaul does not weaken protections for bondholders, S&P said.
The move comes just weeks after a report by CreditSights, which called the group “overleveraged”. The research firm later revised its label, though stuck to its main conclusion that the conglomerate, which owns India’s largest private sector port and airport operator, has too much debt.
In a rebuttal to CreditSights, Adani Group called its company’s leverage ratio “healthy.”
The conglomerate is in advanced talks with infrastructure-focused Jaiprakash Group to buy its cement business for about 50 billion rupees ($607 million), Bloomberg reported earlier this week, citing people familiar with the matter.
An Adani Group spokesman did not immediately comment when contacted by Bloomberg on Thursday about the reason for the withdrawal request.
S&P still rates Adani Ports and Special Economic Zone Ltd. at BBB- with a stable outlook, according to a spokeswoman.