Gautama Adani
Bad news for Gautam Adani is coming from everywhere, from India to the United States. Now bad news has arrived from New York. Rating agency Moody’s on Tuesday downgraded the credit rating of seven Adani companies from stable to “negative”. For this, Moody’s cited the indictment of the group’s president, Gautam Adani, and others for alleged involvement in bribery. Fitch Ratings has placed some of the group’s bonds on negative watch. Let us also tell you which Adani Group companies have been targeted by Moody’s.
These companies were attacked
Moody’s has downgraded the seven companies: Adani Ports and Special Economic Zone Ltd, two restricted groups limited 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 confirmed.
Moody’s said 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 that its capital costs could increase. Moody’s said the rating outlook could be changed to stable if the legal proceedings appear to end without any negative credit impact.
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Fitch also monitors two companies
Additionally, Fitch put the ratings of Adani Energy and Adani Electricity Mumbai on the negative watch list. Fitch said this reflects corporate governance risks, which could affect access to financing 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 liquidity in the near term as there are no significant debt maturities in the next 12 to 18 months.
