Selling in Adani shares may impact group’s ability to raise debt: Moody’s

“These adverse developments 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. We believe a portion of capex is deferred, and significant maturities in rated entities debt until FY2025,” Moody’s said in a statement.

Moody’s said it has not revised its ratings for Adani Green Energy, Adani Transmission or Adani Ports and Special Economic Zone.

“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 the rated entities. including their liquidity position and access to funds to refinance and support ongoing development initiatives,” Moody’s said.

“Nevertheless, these adverse developments are likely to reduce the Group’s ability to raise capital for committed capex or maturing refinanced debt over the next 1-2 years. We believe a portion of the capex is deferred, and will be transferred to rated entities.” does not have significant maturing debt until FY2025,” Moody’s said.

Additionally, Fitch Ratings said it does not forecast any significant revision in cash flow outlook for Adani Group. Eight Adani group companies, including Adani Transmission Limited, Adani Electricity Mumbai Limited and Adani International Container Terminal, hold Fitch ratings.

“Our ongoing monitoring will closely monitor any material changes in rated entities’ access to funding or cost of funding, adverse regulatory/legal developments or ESG-related matters on a longer-term basis,” Fitch said. in a report.

There were no significant offshore bonds maturing in the near term, reducing refinancing risk and near-term liquidity risk, Fitch further said.

(with inputs from agencies)