Fitch Ratings Says ‘No Immediate Impact on Rated Adani Entities’ Credit From Hindenburg Report’
Singapore, February 3: Fitch Ratings says there is no “immediate impact” on the ratings of the Adani entities and their securities following a recent report by Hindenburg Research, alleging malpractices and the rating agency expects no material changes to its forecast cash flow of the conglomerate.
“There are also no near-term significant offshore bond maturities – earliest in June 2024 for Adani Ports and Special Economic Zone Limited (APSEZ, BBB-/Stable); December 2024 for Adani Green Energy Limited Restricted Group 1 (AGEL RG1, BB+/Stable); and 2026 or beyond for all other entities,” the rating agency, Fitch Ratings, said in a report on Friday. Adani Group’s Flagship Firm Adani Enterprises to Be Dropped From Dow Jones Sustainability Indices From February 7 Following Allegations of Accounting Fraud.
No near-term maturities of offshore bonds, the rating agency said, will reduce refinancing risks and near-term liquidity risks. “Our ongoing monitoring will be looking closely at any major changes to the rated entities’ access to financing or cost of financing on a long-term basis, unfavorable regulatory/legal developments or ESG-related matters that could affect credit profiles,” it added.
US-based Hindenburg Research published a report on 24 January 2023, alleging various purported malpractices in Adani Group, leading to a downfall in the share and bond prices of various of its group entities, despite the group publishing its response to the report on January 30, 2023. Adani Enterprises Continue With Losses After Share Price Dropped, Other Group Firms Follow Suit.
In a long response, Adani Group on Sunday said the report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions. It added the report was “nothing but a lie”.
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