Moody's Investors Services said its ratings for Adani Ports and Special Economic Zone Ltd., Adani Green Energy Ltd., and Adani Transmission Ltd. are due to strong fundamentals even as the stocks continued to fall on Friday.
The ratings are "underpinned by their regulated infrastructure businesses with long-term sales contracts, or their strong operating cash flows and dominant market position", it said.
"Given the significant and rapid decline in the market equity values of the Adani Group companies...our immediate focus is primarily on assessing the rated entities' overall financial flexibility, including their liquidity position and access to funding to support refinancing and ongoing growth initiatives," the ratings agency said.
Moody's said these "adverse developments" are likely to reduce the group's ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years.
"We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY25,” it said.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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