Icra Ratings on Friday revised the outlook of Adani Total Gas Ltd (ATLG) and Adani Ports and Special Economic Zone Ltd (APSEZL) to negative due to sharp drop in share prices and rise in bond yields. international they raised. .
Share prices of Adani Group companies witnessed a sell-off after the US Hindenburg Research released a report in January this year, blaming the port-to-energy merger conglomerate of consumer goods and fraudulent information.
The agency said that ATGL has increased some of its investment plans in the next two years seeing the progress achieved in the projects in the nine and ten rounds. Although the company has funds to meet its short-term financing needs, it has more long-term financing needs. requiring debt financing.
“Therefore, a reduction in Adani Group’s financial flexibility may affect ATGL’s ability to raise funds from the domestic and international markets and result in higher interest rates. basis,” the agency said.
While reviewing APSEZL’s outlook on the negative from stability, Icra said that the company’s record of refinancing a large part of its debt in loans ( mostly from large foreign debt markets) for long periods of time at low interest rates, it is the strength of the debt, which has been affected.