‘No Immediate Impact On Rated Credit Profiles’- Fitch Ratings on Adani Group Companies

“Our ongoing monitoring will be looking closely at any major changes to the rated entities’ access to financing or cost of financing on a long-term basis, unfavourable regulatory/legal developments or ESG-related matters that could affect credit profiles,” Fitch said.

New Delhi: Amid the Adani-Hindenburg turmoil, credit rating agency Fitch Ratings has said that there is no immediate impact on the ratings of the Fitch-rated Adani entities. The rating agency said it expects no material changes to its forecast cash flow.

“There are also no near-term significant offshore bond maturities – earliest in June 2024 for Adani Ports and Special Economic Zone Limited (APSEZ, BBB-/Stable); December 2024 for Adani Green Energy Limited Restricted Group 1 (AGEL RG1, BB+/Stable); and 2026 or beyond for all other entities – reducing refinancing risks and near-term liquidity risks,” the rating agency said.

After Hindenburg Research published a report on 24 January 2023 titled, “Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History”, Adani shares and bond prices fell way too much despite the group publishing its response on 30 January 2023.

“Our ongoing monitoring will be looking closely at any major changes to the rated entities’ access to financing or cost of financing on a long-term basis, unfavourable regulatory/legal developments or ESG-related matters that could affect credit profiles,” Fitch said.

Eight entities/restricted groups within the Adani conglomerate are covered under Fitch Ratings.

Adani Transmission Limited (ATL, BBB-/Stable); Adani Electricity Mumbai Limited (AEML, senior secured US dollar notes rated at ‘BBB-’); APSEZ; Adani International Container Terminal Private Limited (AICTPL, senior secured US dollar notes rated at ‘BBB-’/Stable); Adani Transmission Restricted Group 1 (ATL RG1, BBB-/Stable); Adani Green Energy Restricted Group 2 (AGEL RG2, senior secured US dollar notes ‘BBB-’/Stable); AGEL RG1 and Mumbai International Airport Limited (MIAL, senior secured US dollar notes ‘BB+’/Stable)

The rating agency’s report comes amid the week-long rout in Adani Group stocks that intensified on Friday after the group decided to call off its follow-on public offering (FPO), which was fully subscribed. The stocks have been facing steep losses since the Hindenburg report on January 24, raising concerns over the group’s financials, which the Group dismissed as as ‘baseless’.