Moody's The Investors Service reviewed the outlook in four Adani Group companies, Adani Green Energy, Adani Green Energy Restricted Group (AGEL – RG-1), Adani Broadcast, Step OneIt is Adani Electricity Mumbai, from 'negative' to 'stable'. This comes a year after Moody's downgraded its outlook to 'negative' following allegations of poor corporate governance practices made by Hindenburg Research. The allegations led to a significant decline in the market value of shares of Adani Group companies.
However, over the past year, the group has demonstrated its continued access to debt capital by completing several debt transactions, including refinancing and obtaining new loan facilities, according to an ET report. Additionally, the group received new capital investments from large institutional and strategic investors.
While an investigation by the Securities and Exchange Board of India (Sebi) is ongoing, the Supreme Court has entrusted the market regulator with completing the investigation into the Adani Group and stated that there is no apparent regulatory failure attributable to Sebi. This reduced the potential downside risk for the group, Moody's said.
Also read | Gautam Adani's fortune hits $100 billion again
The revised rating outlook for Adani Green Energy reflects the company's greater financial flexibility and reduced refinancing risk. The company announced plans to repay its senior notes using financial reserves and capital resources from the sale of a joint venture stake to TotalEnergies SE and a preferential allotment to the Adani family.
Also read | Mukesh Ambani-led Reliance Industries is now the first Indian stock to cross the market cap of Rs 20 lakh crore
Moody's also affirmed a 'stable' outlook for Adani Ports and SEZ, Adani International Container Terminal Pvt Ltd, Adani Green Energy Restricted Group (AGEL RG-2) and Adani Energy Solutions Limited Restricted Group 1 (AESL RG1).