Fitch Ratings has removed energy infrastructure company Adani Energy Solutions Ltd (AESL) from its ‘Ratings Watch Negative’ list, the first upgrade by an international rating agency since the US indictment.
Fitch affirmed AESL’s long-term foreign and local-currency issuer default ratings (IDRs) at ‘BBB-’.
“The company has been removed from Rating Watch Negative and assigned a Negative Outlook,” it said in a statement.
Fitch said it affirmed the ratings as the Adani group has demonstrated adequate funding access since the US indictment of certain board members of another group entity, Adani Green Energy Limited (AGEL), on November 20, 2024.
“We believe the risks associated with the group’s liquidity and funding requirements have moderated,” it said.
“However, the outlook is negative to reflect our view that the proceedings and outcome of the US investigations could reveal that the group’s corporate governance practices are weaker than we expected and lead to negative rating action in the near to medium term.”
The rating agency said that AESL has demonstrated adequate funding access since the US indictment, having drawn ₹5,100 crore from onshore and offshore banking facilities. The group company, AGEL, has also raised onshore funding to refinance its $1.1 billion construction-linked facility, which was due in March 2025. “Nonetheless, increased reliance on onshore funding could heighten refinancing risk over the medium term,” it said.
AESL’s credit profile benefits from India’s stable and favourable regulatory environment.
Hero Motocorp
The ministry of corporate affairs has reportedly found no breach of corporate governance or fund violation by automobile major Hero MotoCorp.
The probe report, which has been finalised and submitted to the ministry, doesn’t call for any further action, Moneycontrol has reported quoting sources.
Two-wheeler major Hero MotoCorp has been under scrutiny over governance standards since 2023.
In June 2023, the ministry ordered an investigation to look into allegations of fund diversion and corporate governance violations.
