On February 13, Moody’s Investor Group announced a change in the outlook on debt papers of four Adani Group companies, shifting it from negative to stable. Concurrently, the ratings agency maintained the stable outlook on the remaining four companies, affirming the ratings of all eight entities.
The companies affected by the revised outlook include Adani Green Energy Limited (AGEL), Adani Green Energy Restricted Group (AGEL RG-1), Adani Transmission Step-One Limited (ATSOL), and Adani Electricity Mumbai Limited (AEML). Meanwhile, Adani Green Energy Restricted Group (AGEL RG-2), Adani Energy Solutions Limited Restricted Group 1 (AESL RG1), Adani Ports and Special Economic Zone Limited (APSEZ), and Adani International Container Terminal Private Ltd (AICTPL) retained their stable outlooks.
Moody’s decision follows recent developments, including S&P’s credit outlook upgrade for Adani Ports and Adani Electricity from ‘negative’ to ‘stable’. Over the past few weeks, the Adani Group has undertaken various debt transactions, including refinancing and securing new loan facilities, indicating continued access to debt capital at favorable rates. Additionally, the group has witnessed significant equity transactions involving large institutional and strategic investors like GQG and Qatar Investment Authority, underscoring continued access to equity markets.
The ratings agency acknowledged ongoing investigations by the Securities and Exchange Board of India (SEBI) concerning the Adani Group. However, Moody’s highlighted the Supreme Court’s decision to task SEBI with completing the investigation and the court’s observation that there is no apparent regulatory failure attributable to SEBI. These developments have mitigated potential tail risks in a downside scenario.
Despite regulatory scrutiny, Moody’s revised outlook reflects confidence in the Adani Group’s financial resilience, evidenced by its successful debt transactions and equity market access. The stability in ratings signals a positive trajectory for the conglomerate amidst evolving regulatory dynamics.
