Ports,
Ratings agency Fitch Ratings said in a report on Wednesday that Adani Transmission and Adani Ports and Special Economic Zone Ltd (APSEZ) are exposed to high contagion risks, which could impact financial resilience.
“Governance weaknesses at the sponsor level and other Adani Group entities expose the Group’s stable cash-generating corporate-like issuers, Adani Transmission and Adani Ports and Special Economic Zones to high contagion risks, which could impact financial resilience.” is, if not addressed properly. Our lower governance rating now limits their rating at ‘BBB-‘,” the release said.
Most of the Adani Group shares regained some lost ground on Wednesday after a heavy selloff a day earlier amid reports of the group’s ability to service debt levels.
Despite Adani Group’s claim of “full” repayment of $2.15 billion in share-backed loans, regulatory filings show that banks have not released a significant portion of promoters’ shares held as collateral. that the loan has not been fully repaid. A report in The Can said.
Meanwhile, most of the senior debt at Adani Group’s rated Indian entities due by the end of December 2022, Fitch said, is offshore and largely secured with US dollar bonds, which will mature only from mid-2024.
“The liquidity position of all rated entities or restricted groups would benefit from the cash flow generation from January 2023 to March 2024, which would add to the cash balance at the end of December 2022,” it said.
On Wednesday, shares of Adani Ports and flagship company Adani Enterprises climbed over 2 per cent to Rs 607 and Rs 1,634, respectively, on the BSE. Adani Power, Adani Wilmar, NDTV, Ambuja Cements and ACC also traded in green in the morning with gains between 0.7 per cent and 1.8 per cent.
