- Moody’s has revised its rating for four Adani group companies from stable to negative.
- These rating actions follow the significant and rapid decline in the market values of the Adani group companies, the rating agency said.
- Seven of the nine shares of the Adani group ended in the red on Friday.
Moody’s Investors Service on Friday downgraded its rating for four Adani group companies from stable to negative following a significant and rapid drop in market value following a report from US-based shortseller Hindenburg Research.
In a statement, Moody’s said that the rating outlook for Adani Green Energy, Adani Green Energy Restricted Group, Adani Transmission Step-One and Adani Electricity Mumbai had changed from stable to negative.
“These rating actions follow the significant and rapid decline in the equity value of the Adani group companies following the recent release of a short-seller report highlighting concerns about governance in the group,” the company said.
Earlier last week, the rating agency said the rapid decline in the market capitalization of Adani group companies is likely to negatively impact the group’s ability to raise capital or refinance its debt over the next two years.
The Hindenburg report on the Adani group released on January 24 has changed the fate of the group, as has Gautam Adani, the chairman of the group. The US-based research firm alleged that the group engaged in stock manipulation, accounting fraud and more.
Index provider MSCI said Thursday it will announce changes to the free-float status of some Adani securities. “MSCI has determined that the characteristics of certain investors are sufficiently uncertain to no longer qualify as free floats under our methodology,” MSCI said in a statement.
This was after receiving feedback from market participants on the suitability and free-float determination of some of the group’s securities, US-based MSCI said in a statement.
The stock rotation continues
Meanwhile, the free fall in Adani group shares continued for the second session in a row on Friday. The MSCI announcement on Thursday had sparked a two-day recovery rally in equities.
Seven out of nine shares of the Adani Group ended in the red on Friday as Adani Ports and SEZ and Ambuja Cements closed higher.
|Adani group company||% change from February 10, 2023|
|Adani Gates & SEZ||0.3%|
|Adani total gas||-5%|
(with PTI inputs)