Fitch Ratings on Friday said it does not see any immediate impact on the ratings of Adani Group's entities and securities, following the row over the short-seller Hindenburg Research report. Fitch Ratings said it expects no material changes to its forecast cash flow. However, Moody's, in a report on the same day, said the adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. Moody's said a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY25.

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Fitch Ratings also said that there were no near-term significant off-shore bond maturities, the earliest ones being in June 2024 for Adani Ports, December 2024 for Adani Green Energy, and 2026 or beyond for all other group entities — this reduces the group's refinancing as well as near-term liquidity risks.

"Our ongoing monitoring will be looking closely at any major changes to the rated entities’ access to financing or cost of financing on a long-term basis, unfavourable regulatory/legal developments or ESG-related matters that could affect credit profiles," Fitch Ratings said in a statement.

Also Read: LIC has not sold any Adani group shares in current selloff: Exclusive

The Adani group's market cap fell below Rs 10 lakh crore on Friday, easing 50 percent of its market cap since January 24. It is over Rs 16 lakh crore, down from record highs.

On Thursday, JN Gupta, Former ED of SEBI, told CNBC-TV18 that there was nothing new in the Hindenburg report. According to him, the market simply saw the report as a trigger point and sold their holdings accordingly.

“The Hindenburg report, if you look at it, provided only that material which got suspicion in the report, and unfortunately market doesn't have the patience to sit on the judgment. They see a trigger, and then panic starts,” said the former SEBI ED.

He also said there was no debt pressure in most Adani Group companies, and he expressed confidence in the fact that the Indian market regulator has a sound risk management system in place.

On January 24, Hindenburg released its research report on the Adani Group, which alleged that the group's companies were "engaged in a stock manipulation and accounting fraud over the course of decades".

The report came just ahead of its Rs 20,000 crore FPO, which was withdrawn even though it was fully subscribed “given the unprecedented situation and market volatility”. All proceeds are being returned to investors.

According to a Bloomberg report, firms' bonds related to Adani Enterprises plunged to distressed levels after the company pulled the large stock offering.

Also Read: Brokerages see limited risk for PSU banks having exposure to Adani group entities

First Published:Feb 3, 2023 2:14 PM IST