New Delhi: Moody’s Ratings said the US SEC and DoJ indictment will be credit negative for Adani group companies. The rating agency said it will take into account the group’s governance practices while rating the ports-to-retail conglomerate. The rating agency said that Adani group;’s ratings are mainly determined by the conglomerate’s ability to raise funds. These are used to meet its requirements for liquidity, Moody’s said.
Adani Group’s governance practices are also under scrutiny, according to the rating agency. In February, Moody’s upgraded the outlook on 4 Adani Group to stable from negative. This came exactly a year after the company’s stocks plunged following Hindenburg Research’s allegations against the Gautam Adani-led group.
The ratings of Adani Green, Adani Electricity Mumbai, Adani Transmission and Adani Energy Solutions were upgraded by Moody’s citing the group’s refinancing operations and demonstrating its ability to access debt capital at lucrative costs. The rating agency cited predictable cash flow and power purchase agreements as reasons behind the affirmation of Adani Green’s senior secured bond rating.
US SEC indicts Gautam Adani, nephew
US markets regulator, the Securities and Exchange Commission, has indicted Adani group founder chairman Gautam Adani and his nephew Sagar Adani for alleged kickbacks paid to Indian authorities and falsely claiming transparency while raising funds from US-based investors. To be sure, the US district stated these charges were allegations until proven and Adani Group and other defendants were innocent until proven guilty.
Adani Green Energy suspended a $600 million bond sale announced on Wednesday after the US SEC indictment was made public. The US SEC has also named former Adani Green CEO Vneet Jaain and the Solar Energy Corporation of India, among other entities in the indictment.
Adani Green Energy’s share price history
Adani Green Energy’s share price was down 18.95 per cent on Thursday. The company’s share price declined 23.52 per cent in the past 5 days. In the past month, it was down 33.07 per cent. Adani green’s share price was down 38.42 per cent in the past 6 months but up 23.57 per cent in the past year.
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