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Mumbai: The process of falling upside down of Adani group companies in the stock market continues. One of the major reasons behind its fall today is the jibe from Moody’s to the group. Moody’s Investors Service has downgraded the credit outlook of four Adani group companies to negative from stable following a sharp drop in market valuation. The share price of the group companies has come down drastically following the report by American short seller Hindenburg Research.
Moody’s said in a statement on Friday that the credit outlook of Adani Green Energy Limited, Adani Green Energy Restricted Group, Adani Transmission Step-One Limited and Adani Electricity Mumbai Limited has been changed from stable to negative. Moody’s said, “This step has been taken in view of the significant decline in the market capitalization of the group companies following allegations of fraud and manipulation in the Hindenburg Research report.”
The market capitalization of Adani group companies has decreased by $100 billion since the Hindenburg Research report came out. Moody’s said it has affirmed the ratings of eight Adani Group companies. However, the rating on Adani Ports and Special Economic Zone Ltd. (APSEZ) and Adani International Container Terminal has been retained at ‘Stable’.
There is no change in the outlook for Adani Green Energy Restricted Group (AGEL RG-2) and Adani Transmission Restricted Group 1 (ATL RG-1). Moody’s has clarified that it is unlikely to upgrade the credit rating of these four companies in the near future due to the negative outlook.
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