On November 20, 2024, three AGEL board members were indicted by US authorities for alleged bribery and for providing false and misleading statements to investors during a 2021 offshore note offering


Fitch Ratings has revised the outlook on four Adani Group entities to "Negative" and placed three entities under "Rating Watch Negative" (RWN) following bribery charges and the indictment of certain board members of Adani Green Energy Limited (AGEL) by the US Securities and Exchange Commission (SEC) and Department of Justice (DoJ). The outlook on the following firms has been revised from "Stable" to "Negative," while their "BBB-" rating has been affirmed. These entities include Adani International Container Terminal Private Ltd (AICTPL), Adani Green Energy Limited Restricted Group 1 (AGEL RG1), Adani Green Energy Limited Restricted Group 2 (AGEL RG2), and Adani Energy Solutions Ltd Restricted Group (AESL RG).

Peer rating agency S&P Global has also revised the outlook to "Negative" for Adani Electricity Mumbai Ltd (Adani Electricity), Adani Ports and Special Economic Zone Ltd (APSEZ), and Adani Green Energy Limited Restricted Group 2 (AGEL RG2). Fitch has placed the following entities under RWN: 

  • Adani Ports and Special Economic Zone Ltd (APSEZ) – "BBB-"

  • North Queensland Export Terminal Pty Ltd (NQXT) – "BB+"

  • Mumbai International Airport Ltd (MIAL) – "BB+" 

In a statement, Fitch said, "The RWN on APSEZ, NQXT, and MIAL reflects increased corporate governance risk and potential contagion risk that could impact funding access and liquidity of the rated entities if corporate governance risk materialises following the US indictment."

“We will monitor the ongoing investigations for developments impacting the financial flexibility of the rated entities, particularly any material deterioration in near- to medium-term funding access, including their ability to roll over existing credit lines or access new facilities, as well as potentially higher funding costs,” Fitch stated.

The "Negative" outlook reflects the risk of higher funding costs and the materialisation of weaknesses in corporate governance and internal controls, Fitch concluded.