Mumbai: Rating company Standard & Poor’s (S&P) has stated that it might take a “negative rating action” on Adani Group corporations must any investigation discover severe wrongdoing. This would possibly come with in the past undisclosed subject matter related-party loans, money leakage, or misreporting.
The commentary from the score company is available in a FAQ-style observation printed on Wednesday, titled ‘Adani Group: The Known Unknowns’. “Like much of the market, we are waiting for more information about Adani Group before deciding the direction of our ratings. We believe further details on governance and funding risks over the next 12-24 months would drive the ratings,” said S&P Global Ratings credit analyst Abhishek Dangra.
S&P said in a statement, “Downside risks could stem not just from restricted access to funding, but also from our broader view on the quality of the group’s governance.”
In early February, S&P revised to negative the rating outlook on Adani Electricity and Adani Ports & Special Economic Zone. According to S&P, this reflected the governance risks and funding challenges of the wider group. S&P also affirmed the ‘BBB-‘ ratings on these entities.
“Assessing the group’s creditworthiness, leverage and liquidity position is difficult given our reliance on public information for unrated listed entities. We also rely on limited public disclosures of unlisted, private entities, and of funding or liabilities at the promoter level,” said S&P Global Ratings credit analyst Richard Langberg.
Much of the focus of the rating agency is on related-party transactions. “We already assess governance as a relative weakness in our rating analysis of Adani Group entities due to significant promoter control, frequent related-party transactions, lack of transparency of the credit position of the promoter-held entities, and aggressive growth appetite,” added Langberg. Most of the Adani Group corporations ended within the inexperienced on Wednesday barring Adani Enterprises and Adani Ports.
On February 3, within the wake of allegations made within the short-seller Hindenburg document, which was once adopted by means of a rout in Adani proportion costs, S&P had stated that there’s a chance that investor considerations concerning the workforce’s governance and disclosures are better than what was once factored into the scores. It added that new investigations and adverse marketplace sentiment would possibly result in higher price of capital and cut back investment get right of entry to for rated entities.
The commentary from the score company is available in a FAQ-style observation printed on Wednesday, titled ‘Adani Group: The Known Unknowns’. “Like much of the market, we are waiting for more information about Adani Group before deciding the direction of our ratings. We believe further details on governance and funding risks over the next 12-24 months would drive the ratings,” said S&P Global Ratings credit analyst Abhishek Dangra.
S&P said in a statement, “Downside risks could stem not just from restricted access to funding, but also from our broader view on the quality of the group’s governance.”
In early February, S&P revised to negative the rating outlook on Adani Electricity and Adani Ports & Special Economic Zone. According to S&P, this reflected the governance risks and funding challenges of the wider group. S&P also affirmed the ‘BBB-‘ ratings on these entities.
“Assessing the group’s creditworthiness, leverage and liquidity position is difficult given our reliance on public information for unrated listed entities. We also rely on limited public disclosures of unlisted, private entities, and of funding or liabilities at the promoter level,” said S&P Global Ratings credit analyst Richard Langberg.
Much of the focus of the rating agency is on related-party transactions. “We already assess governance as a relative weakness in our rating analysis of Adani Group entities due to significant promoter control, frequent related-party transactions, lack of transparency of the credit position of the promoter-held entities, and aggressive growth appetite,” added Langberg. Most of the Adani Group corporations ended within the inexperienced on Wednesday barring Adani Enterprises and Adani Ports.
On February 3, within the wake of allegations made within the short-seller Hindenburg document, which was once adopted by means of a rout in Adani proportion costs, S&P had stated that there’s a chance that investor considerations concerning the workforce’s governance and disclosures are better than what was once factored into the scores. It added that new investigations and adverse marketplace sentiment would possibly result in higher price of capital and cut back investment get right of entry to for rated entities.
