(Reuters) – S&P International Scores lowered its outlook on three Adani Group entities to unfavorable from secure on Friday, citing dangers to funding entry following a U.S. indictment of the conglomerate’s billionaire founder, Gautam Adani, on bribery fees.
Adani and 7 different folks, together with his nephew Sagar, had been indicted on Thursday for fraud by U.S. prosecutors for his or her alleged roles in a $265 million scheme to bribe Indian officers to safe power-supply offers.
Adani Group has mentioned the accusations levelled by U.S. federal prosecutors, in addition to these by the U.S. Securities and Trade Fee in a parallel civil case, are “baseless and denied” and that it’ll search “all possible legal recourse.”
The U.S. indictment might have an effect on investor confidence in different Adani Group entities, because the founder sits on the boards of different corporations inside the group, probably impairing their entry to funding and growing their funding prices, S&P mentioned in a be aware.
“The group will need regular access to both equity and debt markets given its large growth plans, in addition to its regular refinancing. We believe domestic, as well as some international banks and bond market investors, look at Adani entities as a group, and could set group limits on their exposure,” S&P mentioned.
Bonds and most shares of the Adani Group dropped for a second session on Friday after the indictment.
