Fitch places some Adani bonds on negative watch after US bribery charges: Report

Fitch places some Adani bonds on negative watch after US bribery charges: Report

Ratings agency Fitch has put some of Adani Group's bonds on watch for a possible downgrade after some of the firm's key executives were indicted by U.S. authorities on bribery charges.

Adani Energy Solutions Ltd, Adani Electricity Mumbai and some of Adani Ports and Special Economic Zone (APSEZ) rupee and dollar bonds are now on "watch negative", the ratings agency said.

Fitch said it would monitor the U.S. investigation for any impact on Adani's financial position, "particularly any material deterioration in near- to medium-term funding access, including their ability to roll over existing credit lines or access new facilities, as well as potentially higher credit spreads".

Ratings on four Adani subsidiary senior unsecured dollar bonds were downgraded from stable to negative, the agency added.

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US prosecutors have charged Gautam Adani with criminal indictment over involvement in a plan that promised to pay over $250 million, or Rs 2,100 crore in bribes to Indian government officials for solar energy contracts.

The Adani Group has denied bribery charges by US Justice Department and US SEC against the chairman and group officials, calling all allegations 'baseless'.

The group issued a statement attributed to a spokesperson on November 21, stating that it will seek all possible legal recourse, and the company is 'fully compliant' with all the laws.

Adani dollar bonds steadied on Tuesday and prices rose slightly after three days of heavy falls.

Prices on some of the more liquid APSEZ debts maturing between 2027 and 2041 were up between half a cent and 1.5 cents on the dollar. They have fallen about 8-12 cents since news of the indictment, news agency Reuters reported.

With inputs from Reuters