Adani Group companies' liquidity needs seem stable after tabulating the near-term maturities for offshore debt, said JP Morgan. Adani Green bond issue - which has a decent-size loan of over a billion dollars - will be in focus, it added.
The brokerage said Adani Group bonds have gone through a period of volatility after the US indictments of some management and board members linked to Adani Green. The spreads of the bonds seem to have settled since and widened by 100-200 bps, it said, adding that short-tenor bonds spreads widened more due to high dollar prices.
JP Morgan has also rated four Adani Group bonds as 'overweight', three of which are by Adani Ports and SEZ and another by Adani Electricity. JP Morgan has also taken a neutral stand on five other Adani bonds and is underweight on only one issued by Adani Green. "The ability to scale and grow using internal cash flows in the case of Adani Ports gives us strong comfort," said JP Morgan.
The 'overweight' rating falls in the buy rating category, as per JP Morgan. The US investment firm also gives two other ratings - 'neutral', which falls in hold category, and 'underweight', which falls in the sell category.
Adani Bonds could do well than anticipated if there was a quick resolution of the US charges, successful refinancing of the upcoming bonds and credit facilities, and an improved operating performance, said the brokerage.
Adani Group has rejected the charges by US authorities and asserted that chairman Gautam Adani, his nephew and Adani Green executive director Sagar Adani, and Chief Executive Officer Vneet Jaain have not been named in bribery charges.
"Every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group," Chairman Gautam Adani said at a recent event.
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