New Delhi:
S&P Global Ratings on Friday revised its outlook for Adani Ports and Adani Electricity from negative to stable, while confirming the rating.
A US short-seller report citing significant governance issues for the Adani Group, many of which are related to shareholder-level disclosures and actions, has led to a sharp fall in stock and bond prices of the Adani Group entities.
The company has responded to the allegations and has also decided to return cash from a fully underwritten $2.4 billion bid for shares in Adani Enterprises Ltd, the promoters’ flagship, due to market volatility.
“There is a risk that investor concerns about the group’s governance and disclosures are greater than we currently factor into our ratings, or that new investigations and negative market sentiment could lead to higher costs of capital and reduced access to funding for rated entities said S&P. said in a statement.
As a result, it has revised the rating outlook from stable to negative for Adani Electricity and Adani Ports.
“We have confirmed our issuer and issuer ratings for the entities as their business fundamentals remain intact, short-term liquidity is adequate and debt maturity is manageable over the next 12 months,” it added.
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