Fitch Ratings said on Friday that there is no immediate impact on the Fitch-rated Adani entities and their securities, and that it expects no material changes to its forecast cash flow. The clarification comes after the damning Hindenburg report that alleged the Adani Group of stock manipulation, accounting fraud and other malpractices.
“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,” it said.
The ratings agency said that its ongoing monitoring will closely look at major changes to the rated entities’ access to financing or cost financing on a long-term basis, unfavourable regulatory/legal developments or ESG-related matters.
Fitch has ratings on eight Adani entities including, Adani Transmission Limited (BBB-/Stable); Adani Electricity Mumbai Limited (senior secured US dollar notes rated at ‘BBB-’); APSEZ; Adani International Container Terminal Private Limited (senior secured US dollar notes rated at ‘BBB-’/Stable); Adani Transmission Restricted Group 1 (BBB-/Stable); Adani Green Energy Restricted Group 2 (senior secured US dollar notes ‘BBB-’/Stable); AGEL RG1 and Mumbai International Airport Limited (senior secured US dollar notes ‘BB+’/Stable).
On January 24, Hindenburg Research released a report alleging the conglomerate of malpractices that led to a downfall in the share and bond prices of various group entities. This crash happened even as the company released a 413-page response to the allegations. The group accused short-seller Hindenburg of profiting from its crash. On Wednesday, the group also withdrew its fully-subscribed Rs 20,000 crore FPO, and said that it would be morally wrong if they proceeded with the FPO amid the volatile market scene, leading to losses to the investors.
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