S&P Global revises Adani Electricity, Adani Ports ratings to ‘negative’

Global credit standing company S&P Global Ratings on Friday mentioned it has revised the score outlook of Adani Electricity Mumbai Ltd and Adani Ports and Special Economic Zone Ltd to unfavorable from secure.

“The unfavorable outlook displays the chance of a deterioration within the credit score profile of Adani Ports and Adani Electricity Mumbai due to governance dangers and funding challenges for the bigger Adani Group,” it mentioned.

The score company mentioned a short-seller report alleging vital governance points for the Adani Group, a lot of which relate to disclosures and actions on the shareholder stage, has triggered a pointy fall in Adani Group entities’ fairness and bond costs.

There is a threat that investor issues concerning the group’s governance and disclosures are bigger than it has at present factored within the ratings, or that new investigations and unfavorable market sentiment might lead to elevated price of capital and cut back funding entry for Adani Ports and Adani Electricity, S&P Global mentioned.

According to the credit standing company, it has affirmed issuer and subject ratings on the entities as their enterprise fundamentals stay intact, short-term liquidity is ample, and debt maturities within the subsequent 12 months are manageable.

(With inputs from IANS)