(March 11): Fitch Ratings has removed Adani Energy Solutions Ltd from a rating watch and assigned it a negative outlook, citing moderating risks associated with the group’s liquidity.

“The Adani group has demonstrated adequate funding access since the US indictment of certain board members of another group entity, Adani Green Energy Ltd,” according to a statement by Fitch dated March 9. Separately, the assessor removed Adani Electricity Mumbai Ltd from negative watch but said the US investigations could put pressure on its rating.

Fitch affirmed ratings for both the firms at BBB-, just a notch above junk rating.

US federal prosecutors in November alleged that Gautam Adani, one of the world’s richest people, and his associates promised to pay more than US$250 million (RM1.1 billion) in bribes to Indian government officials to win solar energy contracts and concealed the plan as they sought to raise money from US investors. The Adani Group has denied the allegations as baseless and said it would seek legal recourse.

The negative outlook reflects Fitch’s view that the US investigations’ outcome could reveal corporate governance practices are weaker than the rating firm expected and could lead to negative rating action in the near to medium term, analysts including Girish Madan wrote.

Uploaded by Arion Yeow