India to deliver US summons to Adani for alleged bribery

The Indian government has asked a local court to deliver a summons issued by the U.S. Securities and Exchange Commission to billionaire Gautam Adani over alleged securities fraud and a $265 million bribery scheme, according to a letter seen by Reuters.

- Reuters

NEW DELHI: Fitch Ratings has removed Adani Energy Solutions Ltd from a rating watch and assigned it a negative outlook, saying Adani group has demonstrated adequate funding access since the US indictment of its key executives.

Fitch Ratings affirmed Adani Energy Solutions Limited's (AESL) long-term foreign- and local-currency issuer default ratings (IDRs) at 'BBB-'.

"The ratings have been removed from Rating Watch Negative and assigned a Negative Outlook," it said in a statement.

The rating agency said the Adani group has "demonstrated adequate funding access" since its chairman Gautam Adani and two other key executives were indicted in the US court on allegations of being part of a bribery scheme to win a renewable energy supply contract.

"We believe the risks associated with the group's liquidity and funding requirements have moderated," it said.

"However, the Outlook is Negative to reflect our view that the proceedings and outcome of the US investigations could reveal that the group's corporate governance practices are weaker than we expected and lead to negative rating action in the near to medium term."

Fitch said it will monitor the investigations for any evidence of weakness in the entities' governance practices and internal controls and the impact on AESL's financial flexibility.

The indictment, it said, for alleged securities and wire fraud reflects a corporate governance risk for AESL.