Moody’s upgrades outlook on 4 Adani Group companies to ‘stable’

On Tuesday, Moody’s Investors Service upgraded the outlook on four Adani Group companies to stable from negative, while maintaining the stable outlook on four others.

Four Companies of Adani

The four companies that have seen their rating outlook changed to stable from negative are Adani Green Energy Limited, Adani Green Energy Restricted Group 1, Adani Transmission Step-One Limited, and Adani Electricity Mumbai Limited.

The Adani Green Energy Restricted Group 1 includes Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited, and Prayatna Developers Private Limited.

In February 2023, Moody’s revised the outlook on four Adani Group companies to negative due to concerns over access to capital and an increase in capital costs following the release of the Hindenburg Group report, which raised concerns over the Indian group’s governance practices. Consequently, stock prices of Adani Group companies plummeted following the report.

On Tuesday, Moody’s stated, ‘In the ensuing period, the Group has completed a number of debt transactions, including refinancing as well as obtaining new loan facilities, demonstrating its continued access to debt capital at a reasonable cost.’

Moody’s also noted that the Adani Group had shown its ongoing access to equity markets through several significant equity transactions involving large institutional and strategic investors such as GQG and the Qatar Investment Authority.

“Whilst an investigation by Securities and Exchange Board of India – India’s securities market regulator – is still ongoing, the Supreme Court’s decision to entrust SEBI to complete the investigation on the Adani Group and the court’s view that there is no apparent regulatory failure attributable to SEBI have curbed the potential tail risk in a downside scenario,” Moody’s said.

The four Adani Group companies for which the rating outlook remains stable are Adani Green Energy Restricted Group 2, Adani Energy Solutions Limited Restricted Group 1, Adani Ports and Special Economic Zone, and Adani International Container Terminal Private Limited.

Adani Energy Solutions Limited Restricted Group 1 comprises Barmer Power Transmission Service Limited, Raipur-Rajnandgaon-Warora Transmission Ltd, Sipat Transmission Limited, Thar Power Transmission Service Limited, Hadoti Power Transmission Service Limited, and Chhattisgarh-WR Transmission Limited.