High Risk Of Accidents; Both Adani Companies Are Rated By Fitch

Credit rating agency Fitch has downgraded two of Adani Group’s subsidiaries as high-risk. Fitch now points to Adani Group’s port and transmission stocks as two high-risk stocks. The weakness of the group’s management is raising the risk of stocks. These companies are rated BBB negative. Fitch points out that the current crisis may create uncertainty in share prices. The Fitch report was published yesterday.

At the same time, Fitch indicates that some group companies are not exposed to this risk. The rating agency indicated that most of the Adani Group’s debt is from overseas and is safe till the end of December 2022. The group’s US dollar bonds mature only in mid-2024. This will help in ensuring liquidity of all rated institutions. It is indicated that this benefit may be obtained from January 2023 to March 2024.

Also Read: Debt Not Repaid? Stock exchange seeks clarification from Adani

Adani Group’s market capitalization fell by Rs 80,000 crore in just three days from March 26 to 28. Adani shares were heavily sold last day. Adani shares fell on Wednesday after the exchange sought an explanation from the exchange group on the news of debt repayment of the Adani group.

Adani Transmission, Adani Total Gas and Adani Green are trading lower today. Meanwhile, Adani Enterprises and Adani Ports bounced back.
The Adani Group share price has been in limbo ever since US-based short-seller Hindenburg Research alleged manipulation of Adani Group shares and accounting fraud by the companies. Hindenburg also accused Vinod Adani, brother of Adani Group chairman Gautam Adani, of running a chain of shell companies, including one in Mauritius. But the Adani Group has denied these allegations.