The following ratings have been placed on Rating Watch Negative by Fitch:
- Adani Ports: Long-term foreign currency IDR with a BBB- and a BBB- rating on its US Dollar senior unsecured bond.
- North Queensland Export Terminal Pty Ltd: BB+ rating on Australian dollar senior secured bonds
- Mumbai International Airport Ltd’s US Dollar senior secured bonds which have a BB+ rating.
These entities have seen their ratings being affirmed but oulook revised to negative from stable:
- The BBB- rating on Adani International Container Terminal Pvt. Ltd.’s US Dollar senior secured bonds
- The BBB- rating on Adani Green Energy Ltd Restricted Group 1’s (AGEL RG1) US Dollar senior secured bonds
- The BBB- rating on Adani Energy Solutions Ltd. Restricted Group’s (AESL RG) US Dollar senior secured bonds
Fitch Ratings wrote in its note that the Ratings Watch Negative on the three entities reflects increased corporate governance risk and potential contagion risk that could impact funding access and liquidity of the rated entities, in case the corporate governancce risk materialises following the US indictment.
“While the US indictment mainly involves Adani Green Energy’s key leadership, the proceedings and the outcome could reflect significantly weaker corporate governance practices of the group and can lead to further negative rating actions,” the Fitch Ratings note said.
The ratings agency further said that it will monitor the ongoing investigations for developments impacting financial flexibility of the rated entities, particularly any material deterioration in the near-to medium-term funding access, including their ability to roll over existing credit lines or access new facilities.
