Moody's on Friday said that events following Hindenburg's research report may reduce Adani group's ability to raise capital over the next one-two years.
"These adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY2025.”
Moreover, Moody's added that its ratings for Adani Ports, Adani Green Energy Limited, Special Economic Zone Limited, and Adani Transmission Limited are still underpinned by their regulated infrastructure businesses.
“Moody’s ratings for Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, and Adani Transmission Limited are underpinned by their regulated infrastructure businesses with long-term sales contracts, or their strong operating cash flows and dominant market position," it said.
Moody's added that its immediate focus is on assessing overall financial flexibility including liquidity position and access to funding of Adani Group companies. The report said this on the back of rapid decline in the market equity values of the Adani Group companies.
However, Fitch Ratings said it does not see any immediate impact on the ratings of Adani Group's entities and securities and added that it expects no material changes to its forecast cash flow.
Hindenburg in its research report had said that the Adani Group companies were engaged in "stock manipulation and accounting fraud." Hindenburg said that its report was based on research spanning over two years.
However, some companies of the Adani group witnessed recovery from lows on Friday. Adani Ports now up 0.5 percent after declining over 10 percent and Adani Enterprises now down 11 percent after declining 35 percent.
First Published: Feb 3, 2023 2:29 PM IST
