According to Fitch, the risks associated with the liquidity and funding needs of the group have decreased.
Ratings agency Fitch on Thursday removed Adani Energy Solutions Limited from rating monitoring. The rating agency has given it a negative outlook. Fitch has said that the Adani Group has demonstrated adequate financing access to its leading officers since the US was prosecuted. According to PTI news, Fitch Ratings have retained the long-term foreign and local currency issuer default rating (IDR) of Adani Energy Solutions Limited (AESL) on ‘BBB-‘.
The company has demonstrated adequate funding access
According to the news, Fitch said that Adani Group has demonstrated adequate funding access to its chairman Gautam Adani and two other prominent officials since being prosecuted in the US court on allegations of being part of the bribery scheme to win the renewable energy supply contract. We believe that the risk related to the liquidity and funding needs of the group has come down. However, Outlook is negative, which shows our approach that American investigation proceedings and results can reveal that the corporate administration practices of the group are weak by our expectations and can lead to negative rating action in the close to medium period.
Monitoring of investigation
Fitch said it would monitor any evidence of the administration practices of the institutions and weakness in internal controls and the investigation to the impact on the financial flexibility of Adani Energy Solutions Limited. It said that the prosecution for alleged securities and wire fraud reflects the corporate administration risk for AESL. Any signs or conviction of weaknesses in the administration practices and internal controls of Adani Group’s institutions that can be revealed as part of the process can put pressure on the rating.
Funding can disrupt access to access
The rating agency also says that action and American investigation results can disrupt the funding access of the group. Fitch said that Adani Energy Solutions Limited has demonstrated adequate funding access since the US prosecution, which has withdrawn Rs 5,100 crore from onshore and offshore banking facilities. The group’s company AGEL has also gathered onshore funding to refine its US $ 1.1 billion-linked facility, which was to be completed in March 2025.
Latest business news
