Moody's cuts outlook on seven Adani entities to -ve from stable

FITCH PUTS SOME BONDS OF THE CONGLOMERATE ON NEGATIVE WATCH

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NEW DELHI: Ratings agency Moody's said on Tuesday that it has cut the outlook on the ratings of seven Adani entities to 'negative' from 'stable', citing the US indictment of Chairman Gautam Adani and others on alleged bribery charges.

Separately, Fitch Ratings put some bonds of the conglomerate on negative watch.

Moody's affirmed the ratings on all seven entities - Adani Ports and Special Economic Zone Ltd, two limited restricted groups of Adani Green Energy Ltd, Adani Transmission Step-One Ltd, Adani Transportation Restricted group 1 (AESL RG1), Adani Electricity Mumbai Ltd and Adani International Container Terminal Pvt Ltd.

"These rating actions follow the indictment of AGEL chairman Gautam Adani and several senior management team members by the US Attorney's Office in a criminal case and the filing of charges by the US SEC in a civil case," Moody's said.

The charges and allegations include bribery of Indian government officials, securities and wire fraud; conspiracy to violate the US Foreign Corrupt Practices Act and obstruct justice; false statements made in annual reports, and false statements made to the US government in relation to its investigation into the group.

"The change in the outlook on the seven Adani entities to negative considers the indictment of Adani and other senior Adani executives on bribery and other charges, which will likely weaken Adani Group's access to funding and increase its capital costs," it said.