Moody’s Downgrades Adani Entities Amid US-Indictments

Ratings agency Moody's has downgraded the outlook for seven Adani entities to 'negative' following bribery charges against Chairman Gautam Adani and others. The allegations include bribery, securities fraud, and other violations. This action potentially impacts Adani's governance and credit outlook, as legal proceedings continue.

Moody's has downgraded the credit outlook for seven Adani entities from 'stable' to 'negative', citing the recent US indictment of Chairman Gautam Adani on bribery charges. Fitch Ratings also put select bonds of the conglomerate on a negative watch, amplifying concerns about corporate governance.

The changes come amidst allegations involving bribery, securities fraud, and false statements in both annual reports and submissions to the US government. These charges could undermine Adani's governance structure and access to funding, potentially increasing capital costs.

Fitch's separate action following the indictment of Adani Green Energy board members further underscores the heightened corporate governance risk and its implications on funding access. The Adani Group's current liquidity is deemed sufficient, but refinancing risks loom if borrowing costs rise significantly.

(With inputs from agencies.)