Due to governance weaknesses at the parent conglomerate and other Adani group firms, Fitch said two Adani Group subsidiaries have “heightened contagion risks” that might undermine their financial flexibility.
Late Tuesday, Fitch warned that Adani Transmission Ltd. (ADAI.NS) and Adani Ports and Special Economic Zone (APSE.NS) are risky.
Fitch stated early this month that short-seller Hindenburg Research’s Jan. 24 research on Adani Group had no immediate impact on its ratings.
Since the investigation accused the ports-to-energy behemoth of tax haven abuse and stock manipulation, its seven listed corporations have lost almost $120 billion in market value.
Fitch stated that “cash flow creation from January 2023 to March 2024 will strengthen the liquidity of the rated groups.”
