Four Adani Group Companies’ Outlooks Are Downgraded By Moody’s, Citing Sharp Drops In Market Value

Moody’s cut its outlook for four Adani Group companies on Friday, citing a “significant and rapid decline” in the entities’ market values, according to a notice from the ratings agency.

It downgraded Adani Green Energy, Adani Transmission Step-One, Adani Electricity Mumbai, and Adani Green Energy Restricted Group – an entity that includes Adani Green Energy, Parampujya Solar Energy, and Prayatna Developers – from stable to negative.

“These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller,” Moody’s said.

The ratings agency cited “the recent release of a report from a short-seller highlighting governance concerns in the Group” without naming Hindenburg Research.

In a January 24 report, a US short seller accused the Indian conglomerate of stock manipulation and accounting fraud, which Adani has denied.

As a result of the Hindenburg report, Adani group companies have lost more than $100 billion in market capitalization.

Moody’s said the downgrade to negative for Adani Green Energy takes into account the company’s large capital spending program and reliance on sponsorship.

Adani Green Energy’s support, according to Moody’s, will likely take the form of subordinated debt or shareholder loans, and will “likely be less certain in the current environment.”

“The negative outlook also factors in the company’s significant refinancing needs of around $2.7 billion in fiscal year ending March 2025 and limited headroom in its credit metrics to manage any material increase in funding costs,” it said.

For four additional Adani group companies, including Adani Ports and Special Economic Zone and Adani International Container Terminal, Moody’s maintained a stable outlook. The list also included the Adani Green Energy Restricted Group and the Adani Transmission Restricted Group.

After announcing last week that it would reduce the weightings of Adani Enterprises, the conglomerate’s flagship company, and three other Adani group companies, global index provider MSCI released its most recent revision.

However, according to MSCI’s most recent quarterly review, no Adani stocks have been dropped from its global index.

On Tuesday, Adani Enterprises is expected to release financial results for the third quarter.

(Adapted from


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