Fitch places Adani Group firms on rating watch negative

Fitch Ratings placed Adani Energy Solutions Limited (AESL) and Adani Electricity Mumbai Limited (AEML) on Rating Watch Negative (RWN) after the indictment of certain Adani Green Energy Limited (AGEL) board members by US authorities.

The RWN reflects increased corporate governance risk and potential contagion risk that could impact the funding access and liquidity of the Fitch-rated Adani group entities.

Three AGEL board members were indicted on November 20, 2024 for securities and wire fraud, as well as misleading investors in a 2021 offshore note offering. The group has refuted these claims.

Fitch will closely monitor the investigations and their potential impact on the financial flexibility of the rated entities, including their ability to access funding and refinance existing debt.

Attribution: Fitch Ratings report

Subediting: M. S. Salama