Indian stock market: Adani group stocks, including Adani Power and ACC, traded in the green today, March 10. The gains come after ratings agency Fitch Ratings stated that risks related to the group’s liquidity and funding requirements have moderated.
Fitch removed Adani Energy solutions from its ‘Rating Watch Negative’ but maintained its negative outlook, citing concerns over ongoing U.S. investigations that could expose governance weaknesses and impact financial stability.
The rating agency has affirmed Adani Energy Solutions Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-‘. The agency has also affirmed the AESL-guaranteed 4.0% USD 500 million senior secured notes due 2026 and 4.25% USD 500 million senior secured notes due 2036 at ‘BBB-‘. The notes were issued by AESL’s subsidiary, Adani Transmission Step-One Limited.
“We believe the risks associated with the group’s liquidity and funding requirements have moderated. However, the Outlook is Negative to reflect our view that the proceedings and outcome of the U.S. investigations could reveal that the group’s corporate governance practices are weaker than expected and lead to negative rating action in the near to medium term,” said Fitch.
The global rating agency stated that it would monitor the investigations for any evidence of weakness in the entities’ governance practices and internal controls, as well as, the potential impact on AESL’s financial flexibility.
Other Adani Group stocks, including Adani Power, Adani Green Energy, Adani Ports & SEZ, Adani Total Gas, Adani Enterprises, Ambuja Cement, and ACC, traded with gains ranging from 0.68% to 3.70%, supported by positive market sentiment.
Recent Developments
Last week, the Supreme Court refused to grant an interim stay on the Dharavi Slum Rehabilitation project being carried out by the Adani Group, as sought by a company that lost out on the contract.
In November 2022, Adani Properties won the redevelopment contract with a ₹5,069 crore bid, along with a mandatory ₹2,800 crore payment to the Railway Land Development Authority, bringing the total financial commitment to ₹7,869 crore—surpassing Seclink’s original bid.
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