S&P has affirmed the ratings of Adani Ports and Special Economic Zone Ltd. and Adani Electricity Mumbai Ltd., while revising its outlook to ‘Stable’ from ‘Negative’, due to strong business fundamentals and robust cash flows.
The global rating agency said that the conclusion of most regulatory investigations into the Adani Group without evidence of wrongdoing has reduced downside risk.
Both Adani Group companies enjoy good competitive positions, healthy cash flows, and adequate liquidity to meet their debt-servicing requirements, it said in a note on Jan. 22.
“We believe the group remains exposed to some governance risks as part of a large family-owned conglomerate with ambitious growth plans and related-party transactions,” it said.
Improved funding access has alleviated concerns about funding challenges and refinancing risk for the companies, S&P said. “The group has demonstrated access to equity- and asset-backed debt funding over the past several months since the short-seller report.”