JPMorgan Retains Adani's Dollar Bonds Rating Citing Little Impact From US Investigation

Details about the case are scarce, which will result in no potential prosecution.

Based on the details, JPMorgan assumed the prosecution could be related to the 12 GW manufacturing-linked solar energy project, which was signed by Adani Green Energy Ltd. and Azure Power with Solar Energy Corp. of India. However, this project isn't linked to any restricted group bonds from either company.

Estimating anti-bribery provisions under the U.S. FCPA, the brokerage believes there will be no material impact on the company's finances.

JPMorgan said the scope of significant corruption is unlikely if the high transparency of renewable energy tenders in India is taken into account.

Adani Ports & Special Economic Zones Ltd. has managed to get a $553 million loan from its Colombo Port Project from the U.S. Government's Development Financial Arm, which can indicate the company has adhered to diligent practices.