(Reuters) – S&P Global Ratings cut its outlook on three Adani Group entities from stable to negative on Friday, following the U.S. indictment of the company’s billionaire founder, Gautam Adani, on bribery charges. Cited the risks of accessing funding.
Adani and seven others, including his nephew Sagar, were indicted by US prosecutors on Thursday on fraud charges in a $265 million scheme to bribe Indian officials to win power supply deals. .
Adani Group has said the allegations made by US federal prosecutors as well as a parallel civil suit by the US Securities and Exchange Commission are “baseless and denied” and that it will “pursue all possible legal recourse.”
S&P said in a note that the US indictment could affect investor confidence in other Adani group entities, as the founders sit on the boards of other companies within the group, potentially affecting their access to funding. losses and increase their funding costs, S&P said in a note.
“The Group will need regular access to both equity and debt markets, in addition to its regular refinancing, given its large growth plans. We believe that domestic, as well as some international bank and bond market capital Carr, Adani treats the entities as a group, and may set group limits on their exposure,” S&P said.
Bonds and most Adani Group stocks fell for a second session on Friday after the indictment.
