Fitch Ratings has placed India’s Adani Energy Solutions Limited on a negative outlook, citing concerns about corporate governance and potential risks from ongoing U.S. investigations.
This follows accusations from U.S. authorities that billionaire Gautam Adani and top Adani Group executives paid $265 million in bribes for Indian power contracts and misled U.S. investors during fundraising. The Adani Group has denied these charges, calling them “baseless.”
Fitch warned that any adverse findings from the U.S. investigations could weaken governance standards and potentially lead to a downgrade of the company’s rating in the near to medium term. The agency noted that it could lower the rating if the investigations result in regulatory penalties, restrictions, or loss of market confidence.
Despite these concerns, Fitch removed the company from its ‘rating watch negative’ list, stating that risks related to liquidity and funding had moderated. The agency affirmed the company’s Long-Term Foreign- and Local-Currency Issuer Default Ratings at ‘BBB-‘.
Fitch also highlighted that while Adani Energy operates independently, governance issues at the Adani Group could still affect its access to capital markets and liquidity.
