NEW DELHI: According to rating agency Fitch, two Adani group subsidiaries are vulnerable to “heightened contagion risks,” which might limit their ability to raise money. This is because of governance issues at the parent company and other Adani group entities.
In a report published late on Tuesday, Fitch stated that Adani Transmission Ltd., Adani Ports, and the Special Economic Zone are vulnerable to risks.
Early last month, Fitch stated that the January 24 report on the conglomerate by short-seller Hindenburg Research had had no immediate impact on its ratings of Adani group entities and their instruments.
Since the investigation that accused the ports-to-energy conglomerate of improperly using tax havens and manipulating stock prices, seven listed companies in the Adani group have lost more than $120 billion in market value. The conglomerate has refuted the allegations.
The liquidity of the rated groups will be improved by cash flow creation between January 2023 and March 2024, according to Fitch.