Now, Moody’s revises outlook on four Adani Group companies to ‘Stable’ from ‘Negative’ after a year

Moody’s Investors Service has revised the outlook on four Adani Group firms, Adani Green Energy, Adani Green Energy Restricted Group (AGEL – RG-1), Adani Transmission Step One, and Adani Electricity Mumbai, from ‘negative’ to ‘stable’. This comes a year after Moody’s downgraded their outlook to ‘negative’ following allegations of corporate misgovernance practices made by Hindenburg Research.The allegations had led to a significant decline in the market value of the Adani Group companies’ stocks.
However, over the past year, the group has demonstrated its continued access to debt capital by completing several debt transactions, including refinancing and obtaining new loan facilities, according to an ET report. Additionally, the group has received fresh equity investments from large institutional and strategic investors.
While an investigation by the Securities and Exchange Board of India (Sebi) is ongoing, the Supreme Court has entrusted the market regulator to complete the investigation on the Adani Group and has stated that there is no apparent regulatory failure attributable to Sebi. This has reduced the potential downside risk for the group, Moody’s has said.
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The revision in Adani Green Energy’s rating outlook reflects the company’s improved financial flexibility and reduced refinancing risk. The company has announced plans to repay its senior notes using financial reserves and equity proceeds from the sale of a stake in a joint venture to TotalEnergies SE and a preferential allotment to the Adani family.
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Moody’s has also affirmed a ‘stable’ outlook on Adani Ports and SEZ, Adani International Container Terminal Pvt Ltd, Adani Green Energy Restricted Group (AGEL RG-2), and Adani Energy Solutions Limited Restricted Group 1 (AESL RG1).