Adani Ports, Adani Energy Share Price Drop as Fitch Takes Negative Rating Actions

On November 25, 2024, Fitch Ratings placed several Adani group ratings on Rating Watch Negative, following bribery charges against board members of Adani Green Energy. Some ratings have been affirmed, with outlooks revised to negative.

Ratings Under Review

Fitch has placed Adani Ports’ long-term foreign currency IDR at BBB- and its US Dollar senior unsecured bond rating of BBB- on Rating Watch Negative.

Fitch has affirmed the BBB- ratings on the US Dollar senior secured bonds of Adani Green Energy Ltd Restricted Group 1 (AGEL RG1) and Adani Energy Solutions Ltd Restricted Group (AESL RG). However, the outlook for both has been revised from stable to negative.

Key Concern

Fitch Ratings stated that the Negative Rating Watch for the three entities reflects heightened concerns over corporate governance and the potential for broader risks that could affect funding availability and liquidity, should these governance issues materialise following the US indictment.

The rating agency added that it will closely observe the ongoing investigations for any developments that could affect the financial flexibility of the rated entities, especially if there is a significant decline in their ability to secure new funding or extend existing credit lines in the near to medium term.

Share Price Performance

On November 26, 2024, Adani Energy Solutions’ share price was trading 3.96% lower at ₹600.45 at 1:45 PM on the NSE, while Adani Green Energy’s share price was down 6.71%, trading at ₹903.80.

Over the past week, Adani Energy Solutions’ stock has fallen by 28.93%, whereas Adani Green Energy recorded a steeper decline of 34.99%.

Adani Ports and Special Economic Zone’s share price was trading 3.54% lower at ₹1,125.50, marking a 7.73% decline over the last week.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.