Indian Stock Market: Adani Group stock, including Adani Power and ACC, traded in green today on March 10. Earnings at rating agency Fitch Ratings stated that risks related to the group’s liquidity and funding requirements have been adjusted.
Fitch removed Adani Energy Solutions from its “Negative Rating Watches” but maintained a negative view, citing concerns about the ongoing U.S. investigations could reveal governance weaknesses and impact financial stability.
The rating agency has confirmed the “BBB-” long-term foreign and local currency issuer default rating (IDRS). The agency also confirmed that the 4.0% premium notes guaranteed by AESL, which should expire 4.25% in 2026, and the $500 million premium eligibility notes should be on “BBB-” 2036. The notes are issued by ADANI TOMPANTION Step-One Limited, a subsidiary of AESL.
“However, the risks associated with the liquidity and funding requirements of the group. However, the outlook is negative to reflect our view that litigation and results of the U.S. investigation can indicate that the group’s corporate governance practices are weaker than expected and lead to negative rating actions that are close to the medium term,” Fitch said.
The Global Rating Agency said it will monitor investigations to ensure any weaknesses in entity 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, have grown from 0.68% to 3.70% and are backed by positive market sentiment.
Recent developments
Last week, the Supreme Court refused to stop temporarily in the Dharavi slum rehabilitation project conducted by the Adani Group, which was sought by a company that lost its contract.
In November 2022, Adani Properties won a reconstruction contract ₹50.69 million bids, and mandatory ₹Pay US$28 billion to the Railway Land Development Bureau to meet the total financial commitment ₹Rs 7869 crore – Original bid for racing world.
Disclaimer: The opinions and suggestions given in this article are those of individual analysts. These do not represent the mint’s point of view. We recommend that investors contact certified experts before making any investment decisions.
