The rating agency said it expects no material changes to forecast cash flow of Adani Group companies
Fitch Ratings on Friday said there is no immediate impact on the ratings of Adani entities and their securities following a short-seller report alleging malpractices at Adani group. In a statement, the rating agency said it expects no material changes to the conglomerate's forecast cash flow.
Adani Group companies have been under huge selling pressure on the Indian bourses after American short-seller Hindenburg Research came out with a report last week alleging the Gautam Adani-led group of being involved in fraud and market malpractices.
"Our ongoing monitoring will be looking closely at any major changes to the rated entities' access to financing or cost of financing on a long-term basis, unfavourable regulatory/legal developments or ESG-related matters that could affect credit profiles," the ratings agency said in a report," Fitch said in a statement.
Bonds issued by Adani Group have also seen erosion in value over the past one week with global lending firms such as Credit Suisse and Citigroup refusing to accept the bonds as collateral for margin loans.
The ratings agency added that there were no significant offshore bonds maturing in the near term, and that this reduces refinancing risks and near-term liquidity risks. Fitch has ratings on eight entities within the Adani Group.
(With PTI inputs)