Rating agencies cut outlook on Adani cos

MUMBAI: US-based rating agencies Moody's and Fitch on Tuesday lowered their outlook for bonds of Adani group companies to negative from stable, following the bribery charges and indictment of certain board members of Adani Green Energy Ltd (AGEL), including group chairman Gautam Adani, by US Securities and Exchange Commission, and Department of Justice.

- Gopika Gopakumar

Last week, S&P cut the credit outlook on five Adani companies, including Adani Ports and Special Economic Zone Ltd (APSEZ), to negative, following the indictment by the US authorities.

The adverse rating action could hurt the conglomerate's ability to raise fresh funding, and also increase its cost of capital.

Adani stocks fell sharply after the rating actions, with Adani Green Energy, which is at the centre of the alleged $250 million scheme to bribe Indian state government officials to secure power supply contracts, declining the most, by 7.3%, on Tuesday. The Adani Group has strongly denied the US allegations, calling them "baseless" and reaffirming its commitment to maintaining the highest standards of governance and compliance.