S&P Global Ratings has revised its outlook to ‘negative’ on three Adani Group entities—Adani Electricity Mumbai Ltd (Adani Electricity), Adani Ports and Special Economic Zone Ltd (Adani Ports), and Adani Green Energy Ltd’s subsidiary AGEL RG2—following the bribery allegations against Adani Group Chairman Gautam Adani and senior executives. The agency warned that the bribery case could impair the group’s funding access and escalate funding costs.
Key Highlights:
- Adani Green Energy Limited (AGEL RG2):
- The outlook on AGEL RG2, a subsidiary of Adani Green Energy Ltd, was revised to ‘negative’ by S&P.
- The entity, despite being ringfenced from its parent company, has been linked to the allegations.
- S&P affirmed its ‘BB+’ issue rating on AGEL RG2.
- Adani Ports and Adani Electricity:
- Both Adani Ports and Adani Electricity’s ratings were affirmed at ‘BBB-‘, but their outlook was also changed to ‘negative.’
- Impact on Funding:
- The bribery allegations are expected to restrict the group’s access to funding and lead to increased borrowing costs.
S&P indicated that the negative outlook reflects uncertainties regarding the group’s ability to maintain stable access to capital amidst heightened scrutiny and potential reputational damage. The broader Adani group continues to face challenges, as investor sentiment remains cautious following the allegations.
