Icra turns 'negative' on 2 Adani firms

Icra has revised the rating outlook on two Adani group entities - Adani Ports and Special Economic Zone (APSEZ) and Adani Total Gas (ATGL) - from "stable" to "negative". This is on account of deterioration in the group's financial flexibility.

- ABHIJIT LELE Mumbai, 3 March

The agency, however, affirmed the ratings on the long-term loans of APSEZ at "AA+" and of ATGL at "AA-". This follows a sharp decline in share prices and an increase in the yield of international bonds raised by group entities, after a report on the group was released by US-based short seller Hindenburg Research.

The group's strong financial flexibility and APSEZ's track record of refinancing a large part of the debt with borrowings (mostly from overseas debt markets) of longer tenures at lower interest rates were key credit strengths.