Outlook on Adani firms cut

Moody's cuts outlook on seven Adani companies; Fitch flags Adani bonds for possible downgrades

- Gopika Gopakumar

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.

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.