By PC Bureau
Global rating agency Moody’s has revised the outlook for seven Adani Group companies from “stable” to “negative.” This decision affects major subsidiaries, including:
- Adani Green Energy (two units)
- Adani Transmission (two units)
- Adani Electricity Mumbai Ltd
- Adani Ports and Special Economic Zone Ltd (APSEZ)
- Adani International Container Terminal
Moody’s cited increased challenges in the group’s access to global capital markets and potential hikes in financing costs. The revision raises concerns about the group’s ability to maintain financial stability if market conditions remain strained or deteriorate further. A “negative” outlook signals potential credit risks, including heightened borrowing costs and weakened investor confidence.
“An upgrade of the ratings is unlikely in the near term, given the negative outlook. However, we could change the outlooks to stable if legal proceedings conclude with no material negative credit impact,” Moody’s stated.
The revision reflects a broader reassessment of risks tied to Adani’s reliance on debt and rapid expansion. The group faces added scrutiny following the indictment of its founder and chairman in a U.S. federal bribery case, which has already shaken market sentiment. Consequently, all 11 Adani group stocks traded lower, with Adani Green Energy declining over 7%.
This move follows Fitch Ratings placing Adani Energy Solutions Ltd (AESL) and Adani Electricity Mumbai Ltd (AEML) on “Rating Watch Negative.” While both companies maintain robust liquidity—AESL recently raised $1 billion through qualified institutional placement—Fitch warned of medium-term funding risks, including reliance on onshore funding and escalating refinancing costs.
The continuous downgrades point to deteriorating access to global financial markets and a likely increase in the group’s capital costs. As Moody’s notes, this will challenge the group’s ability to fund ongoing and future projects, particularly in sectors like renewable energy and infrastructure where Adani is heavily invested. The added scrutiny could also influence investor sentiment and affect the group’s ambitious growth plans.
