Symbolic picture only. , Photo Credit: Reuters
Moody’s Investors Service warned on February 3 that the Defeat in shares of Adani Group The downgrade could hurt the group’s ability to raise capital, while its partner Fitch saw no immediate impact on its ratings.
Adani Group’s listed companies have lost over $100 billion in value in just one week after short-sellers. Sharp report of Hindenburg Research expressed concern about the port-to-energy group’s debt levels and alleged stock manipulation, accounting fraud and use of tax havens. The Adani Group has denied any wrongdoing and has threatened to sue Hindenburg.
How much has the Adani group suffered since the Hindenburg Report?
“Following the recent release of the short-seller report highlighting governance concerns in view of the significant and rapid decline in market equity values of Adani group companies, our immediate focus is primarily on assessing the overall financial resilience of rated entities. including their liquidity position and access to funds to support refinancing and ongoing development initiatives,” Moody’s said in a statement.
Moody’s said its ratings for Adani Ports and Special Economic Zone Ltd, Adani Green Energy Ltd and Adani Transmission Ltd are based on long-term sales contracts entered into by their regulated infrastructure businesses, or their strong operating cash flows and dominant market position.
“Nevertheless, these adverse events are likely to reduce the group’s ability to raise capital to meet committed capex or refinance refinanced debt over the next 1-2 years.” Separately, Fitch Ratings said it did not see any immediate impact on the credit profile of Adani entities.
It said, “There is no immediate impact on the ratings of Fitch-rated Adani entities and their securities following short-seller reports alleging misconduct at India’s Adani Group, and no material change is expected to its forecasted cash flows.” Is.”
There are also no significant offshore bond maturities for Adani Ports and Special Economic Zone Ltd, at the earliest June 2024; December 2024 for Adani Green Energy Limited Restricted Group 1 (AGEL RG1); and for all other entities by 2026 or beyond – mitigating refinancing risks and near-term liquidity risks.
“Our watchdog will closely monitor any material changes in access to funding or cost of funding, adverse regulatory/legal developments or ESG-related matters on a long-term basis,” Fitch said. ,
Stock market loses $72 billion as Adani-Hindenburg battle intensifies
Hindenburg Research published a report on January 24, 2023, alleging various alleged malpractices caused stock and bond prices of various group entities to decline, despite the group publishing its response on January 30, 2023.
Fitch currently has ratings on eight entities/restricted groups within the Adani Group including Adani Transmission Limited (ATL). “Related-party transactions in these entities outside the normal course of business are also limited,” it said.
Adani, 60, who was the world’s third-richest person a day before Hindenburg released its report on January 24, Slipped to 17th position from rival Mukesh Ambani,