Ratings Agencies' Thumbs Up To Adani Group After "Robust Performance"

In a major boost to the Adani Group, international rating agencies have reaffirmed and upgraded the credit ratings for companies within the group. This includes the affirmation of ratings for eight companies and the restoration of a stable outlook for five entities by both Moody's and S&P.

Fitch, another leading rating agency, has also maintained the ratings of all companies within the Adani Group, supporting the positive trend with a stable outlook. The collective rating actions follow the successful demonstration of robust performances quarter on quarter, access to capital at market see-through prices, and the absence of any tail risk posing a downside scenario.

A credit rating indicates a company's ability to fulfil its financial commitments and any change in such ratings often influence the stock prices.

Moody's, in a statement, highlighted the completion of several debt transactions by the Adani Group, including refinancing and obtaining new loan facilities.

"In the ensuing period, the Group has completed a number of debt transactions, including refinancing as well as obtaining new loan facilities, demonstrating its continued access to debt capital at a reasonable cost.

The report also noted high-profile equity transactions by large institutional and strategic investors such as GQG and Qatar Investment Authority, showcasing the Adani Group's sustained access to the equity market.

The ratings of the four companies were revised to 'negative' in February last year after the Adani Group suffered a stock rout sparked by Hindenburg Research's market manipulation charges.

Adani Group now stands cleared of the charges with the Supreme Court saying there is no apparent regulatory failure attributable to markets regulator SEBI.

S&P stated that the conclusion of most regulatory investigations into the Adani Group without evidence of wrongdoing has reduced downside risk. The repayment of all promoter loans linked to share prices, equity, and bank loans raised by multiple group entities at competitive rates reflects restored access to funding.

These rating affirmations and upgrades underscore the high credit quality of the Adani Group, with stable and predictable cash flows across all its issuers. The Adani Portfolio now boasts the largest number of Investment Grade (BBB-/Baa3 and higher) rated issuances among private companies in India, equivalent to India's sovereign rating.