Rating agency Fitch has said that two of the Adani Group subsidiaries are exposed to high contagion risks as a result of governance weakness at the conglomerate’s sponsor level.
Adani Transmission Limited and Adani Ports and Special Economic Zone are prone to risks which could affect financial flexibility, if not addressed properly, said Fitch report.
The report added that the ratings of restricted group would not be constrained at BBB, the contagion risk is lower for restricted group. The restricted group's credit profile is supported by structural enhancements, such as a defined cash waterfall and limits on the incurrence of additional debt, the note said further.
The Adani group is back in fire-fighting mode after media reports called into question the Group’s ability to repay debt, reviving the selloff in its stock.
Adani Ports & Special Economic Zone Ltd. Fell 5.7 per cent to close at 593 rupees on Tuesday. The sharp selloff in all Adani stocks erased about $6.2 billion from their combined market value, the biggest decline since early February.
Adani Group CFO, Jugeshinder Robbie Singh, criticised media for its deliberate misrepresentation. "Deliberate misrepresentation ( and if i speculate out right lies) of @TheKenWeb ( @SudzzBTS an @nimishshp) they know that relevant exchanges will update end of quarter. The deliberate subterfuge will be clear to all once exchanges update the data post end of quarter,"tweeted the company CFO on Monday.
