CRISIL Reports No Negative Reactions from Lenders and Investors on Adani Despite US Indictment
Recent news surrounding the Adani Group and its founder-chairman Gautam Adani has caused quite a stir. However, according to Crisil Ratings, there seem to be no immediate credit risks for the group in the short term. The agency reassured that the Adani Group has enough liquidity and operational cash flows to meet its debt obligations and planned capital expenditures.
Interestingly, despite the recent U.S. indictment of Gautam Adani and other key executives of Adani Green Energy, there have been no negative actions taken by lenders or investors towards the group as of now. This shows that the group has some flexibility to adjust discretionary capital expenditures based on market conditions and future capital availability. Crisil emphasized that the group’s solid operating income and cash balance help reduce its reliance on external debt to sustain its operations.
In fact, the Adani Group reported a strong operating income of Rs 82,917 crore in fiscal 2024, with a healthy cash balance across its listed entities. This, coupled with infrastructure assets and cash flow cushions, provides the group with some stability during these challenging times.
While the recent legal developments are being closely monitored, Crisil underlined that the group’s ratings remain under continuous surveillance. Feedback from management and lenders indicates that no negative actions have been taken so far. However, any future restrictions on the group’s access to capital or a significant rise in financing costs could pose concerns.
Overall, Crisil’s assessment provides a reassuring perspective on the Adani Group’s current financial position and its ability to navigate through the challenges ahead. While the situation is being closely watched, the group’s strong fundamentals seem to be helping it weather the storm for now.
