Bad news is coming for Gautam Adani from everywhere from India to America. Now bad news has come from New York. Rating agency Moody’s on Tuesday downgraded the credit rating of seven Adani companies from stable to ‘negative’. To do so, Moody’s cited the indictment of group chairman Gautam Adani and others for allegedly being involved in bribery. Fitch Ratings has placed some of the group’s bonds on negative watch. Let us also tell you which companies of Adani Group have been targeted by Moody’s.
These companies were targeted
Moody’s has downgraded all seven companies – Adani Ports and Special Economic Zone Ltd, two limited restricted groups of Adani Green Energy Ltd, Adani Transmission Step-One Ltd, Adani Transportation Restricted Group 1 (AESL RG1), Adani Electricity Mumbai Ltd and Adani International Container Terminal. Pvt Ltd’s rating affirmed.
Moody’s said that Adani Group’s access to financing could be weakened due to the US Attorney’s Office’s criminal indictment against Adani Green Energy Limited (AGEL) Chairman Gautam Adani and several senior management officials and its capital costs could increase. Can. Moody’s said the rating outlook could be changed to stable if the legal proceedings apparently end without any negative credit impact.
Fitch is also monitoring two companies
Additionally, Fitch put the ratings of Adani Energy and Adani Electricity Mumbai on negative watch list. Fitch said this reflects corporate governance risks, which could impact financing access and liquidity. Fitch said it would monitor the investigation for any impact on the financial strength of the rated entities. The rating agency expects AESL and AEML to have adequate near-term liquidity as there are no significant debt maturities in the next 12-18 months.