Backing the Adani Group, embattled in the US bribery case, CRISIL Ratings on Friday said that while the issue at hand is sub judice, the conglomerate has sufficient liquidity and operational cash flows to meet debt obligation and committed capex plans over the medium term.
CRISIL Ratings also factored in the additional flexibility available to the group entities through their association with, and criticality to, the larger Adani Group, “which is one of the leading infrastructure groups in India”. The Adani Group reported a healthy Ebitda of approximately Rs 82,917 crore for fiscal 2024 with a net debt to Ebitda ratio of 2.19 times. Cash balance was over Rs 53,000 crore across 8 listed operating entities as of September 2024 against long-term debt maturities of around Rs 27,500 crore; and go-to market/construction facility of Rs 8,919 crore during October-March fiscal 2025 and Rs 2,137 crore during fiscal 2026, the ratings agency stated.
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Earlier last week, the US Securities and Exchange Commission indicted Adani Group Chairman Gautam Adani, Sagar Adani and Vneet Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements.
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In a parallel move, the Securities and Exchange Commission also charged Gautam Adani and Sagar Adani, and Cyril Cabanes, with conduct arising out of a massive bribery scheme.
Based on management and select lender feedback, CRISIL Ratings said, these developments have not led to any negative actions so far by lenders/investors, such as acceleration of debt repayment or spread resets. Further, it added, “We understand the Adani Group has the flexibility to reduce certain discretionary capital expenditure (capex) depending on developments in financial markets and future capital availability.”
Earlier, GQG Partners had issued a statement maintaining confidence in the group companies’ fundamentals.
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