Following the US indictment of Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and six others over alleged bribery in securing solar energy contracts, global rating agency Moody’s has downgraded its outlook on seven Adani Group entities from ‘stable’ to ‘negative’. Despite the change in outlook, Moody’s has affirmed the credit ratings of the affected companies.
The allegations, which involve alleged bribes amounting to Rs 2,029 crore (US $265 million) to Indian government officials, have sparked international scrutiny. Moody’s expressed concerns about the broader implications of the indictment on the conglomerate’s governance, operational stability, and access to funding, stating that the situation could lead to increased capital costs and potential operational disruptions.
The affected entities include Adani Green Energy Ltd, Adani Transmission Ltd, and Adani Ports and SEZ Ltd, among others. The outlook revision aligns with recent actions by Fitch Ratings and S&P Global, which also flagged concerns about governance and credit stability within the group.
Despite the Adani Group’s strong denial of the charges, Moody’s has warned that continued legal proceedings could trigger further downgrades if disruptions to operations or governance weaknesses are identified. A reversal of the negative outlook would require the group to clear its name without material credit impact.
Shares of Adani Group companies plunged on Tuesday, with Adani Green Energy down 7.05%, Adani Enterprises dropping 4.78%, and Adani Energy Solutions closing 3.79% lower.
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