Fitch takes negative rating actions on Adani Group entities amid US bribery scandal

Ratings agency Fitch has taken negative rating actions on several Adani Group entities and bonds, putting them on watch for a possible downgrade following the indictment of some of the firm's key executives in the U.S. on bribery charges.

Adani Ports, North Queensland Export Terminal, and Mumbai International Airport are among those under review for possible downgrades, while Adani Green Energy’s restricted groups have maintained their ratings but with increased caution over potential governance issues. Fitch highlighted the possibility of tighter funding access and higher costs, though short-term liquidity remains stable for most entities.

Adani Energy Solutions Ltd, Adani Electricity Mumbai and some of Adani Ports and Special Economic Zone rupee and dollar bonds have been placed on rating "watch negative", the ratings agency said. Meanwhile, Fitch has downgraded ratings on four Adani unit senior unsecured dollar bonds from stable to negative.


The rating agency said it would monitor the U.S. investigation for any impact on Adani's financial position, "particularly any material deterioration in near- to medium-term funding access, including their ability to roll over existing credit lines or access new facilities, as well as potentially higher credit spreads."

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The bribery charges have raised significant corporate governance concerns, affecting the group's funding access and liquidity, the agency noted. Fitch also affirmed ratings for some entities, but revised their outlook to negative due to heightened risks.

On November 19, the total market capitalization of Adani Group stocks stood at Rs 14.30 lakh crore but has since fallen by over Rs 2.44 lakh crore, reflecting investor concerns. On November 22 and 25, the market cap fell further by Rs 10,306 crore and Rs 10,436 crore, respectively.

Fitch's downgrades highlights the risk of tighter funding access and potential increases in borrowing costs for the group. However, the ratings agency has affirmed ratings for some of the restricted groups, citing ring-fencing structures and stable cash flows as mitigating factors for the time being. Despite the financial strain, near-term liquidity risks remain limited, though the group's funding access could be constrained over the medium term, especially if governance concerns escalate, Fitch said.

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