New Delhi: Moody’s Investors Service’s ratings unit revised the outlook on 7 Adani Group companies to ‘negative’ to ‘stable’. The rating agency cited the recent bribery allegations against Adani Group made by the US SEC as the reason behind the outlook revision. Moody’s affirmed the ratings of the 7 Adani Group companies.
Moody’s monitors the credit ratings of companies. These ratings are useful to companies for fundraising. A rating outlook revision is expected to affect a company’s ability to raise money from markets.
Moody’s revises outlook on 7 Adani Group companies
Moody’s affirmed the Ba1 rating of Adani Green Energy restricted group and changed the outlook to negative from stable. This entity comprises Adani Green Energy (UP), Parampujya Solar Energy and Prayatna Developers. Moody’s affirmed the Ba1 rating of Adani Green Energy Restricted Group comprising Wardha Solar (Maharashtra), Kodangal Solar Parks and Adani Renewable Energy. The outlook was revised to negative from stable.
Adani Transmission Step-One’s Baa3 rating was affirmed by Moody’s apart from an outlook revision to negative from stable. Moody affirmed the Ba3 rating of Adani Transmission Restricted Group 1, with the outlook revised to negative from stable. This entity comprises Barmer Power Transmission Services, Raipur-Rajnandgaon-Warora Transmission, Sipat Transmission, Thar Power Transmission Service, Hadoti Power Transmission Service and Chhattisgarh-WR Transmission.
Moody’s also affirmed the Baa3 ratings of Adani Electricity Mumbai, Adani Ports and SEZ, and Adani International Container Terminal, while revising the outlook to negative from stable. Moody’s noted that the outlook revision is likely to increase the cost of capital for Adani Group.
S&P, Fitch change outlook on Adani Group companies
S&P Global Ratings warned the US indictment is likely to harm Adani Group’s ability to raise funds. The group’s stocks and bonds had already borne the brunt of the US SEC allegations of bribery against Gautam Adani and others related to the Adani Group. The company also downgraded its outlook in 3 Adani Group companies to negative from stable.
Fitch Ratings also stated that it was contemplating a downgrade on certain Adani group bonds. The rating agency said it may revise the rating to speculative in the aftermath of the US SEC summons to Adani Group chairman Gautam Adani.
Moody’s Investors Service revised the rating outlook on 7 Adani Group companies to negative from stable in the aftermath of the US SEC allegations of bribery against the portd-to-retail conglomerate. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
