International rating agency Moody's says USA action credit negative for Adani group: Report

After the big blow to the Adani Group conglomerate, Zee Business citing Bloomberg report said the international rating agency Moody's held that the development shall be credit negative for the group.

The Moody's statement said that the indictment of the conglomerate's officiials by the US court is credit negative for group companies.

'Our main focus when assessing the Adani Group is on the ability of the Group's companies to access capital to meet their liquidity requirements and on its governance practices," said Moody's.

Furthermore, in light of the development, Adani Group stocks back in India took a sharp beating and fell up to 23 per cent in case of the Group's flagship entity Adani Enterprises.

Also, the group amid the crisis has shelved its fund raising plan via the bond sale route.

Moreover even as the group's investor GQG Partners that invested heavily into the conglomerate post the Hindenburg saga released a statement to the Australian Exchanges, its stock collapsed up to 20 per cent.

Primarily, the embattled businessman Gautam Adani, the chairman of the Adani conglomerate is among eight individuals indicted in a US court over a bribery and fraud scheme. Gautam Adani and other defendants allegedly paid Indian government officials over $250 million in bribes to obtain solar energy supply contracts worth over $2 billion in profits. Gautam Adani, his nephew Sagar Adani and Vneet Jaain, two executives in Adani Green Energy, are charged with misleading investors from the US and other foreign locations about their company’s compliance with antibribery and anticorruption practices when they were seeking capital to fund those energy contracts, according to American authorities.