Priyanka
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A piece of good news has come to the Adani Group after a really long time. The group company Adani Energy Solutions Limited (AESL) has recently been removed from the 'rating watch negative' list by Fitch Ratings. For the first time since the beginning of the Adani-related lawsuit in the US, an international rating agency has upgraded the company's rating. AESL still has a long-term foreign and local-currency issuer default rating (IDR) of 'BBB-' from Fitch. It added that the company's creditworthiness was upgraded from 'rating watch negative' to 'negative outlook'. Fitch noted that as of November 20, 2024, the Adani Group has demonstrated sufficient financing capability due to the indictment of some board members of Adani Green Energy Limited (AGEL) in the US. On the basis of this positive news, Adani Energy Solutions' stock price increased 5% during the trading session. But the stock was closed at 789.10 with an increase of 1.54%.
Fitch still wigs out because of the ongoing US investigation, which is probably why the negative outlook stays the same.
This may indicate gaps in the group's corporate governance which might lead to adverse rating action sometime in the future. Fitch will continue its monitoring with respect to the investigation and any impacts it may have on AESL's financial strength.
Dharavi Work Stoppage Refusal
Independently of this, the SC issued a notice to the Maharashtra government and Adani Properties on a petition that contested the granting of the Dharavi slum redevelopment project to Adani last Friday. Notwithstanding this, the Supreme Court declined to issue a stay on the project because, according to the Adani Group, construction has commenced and is being carried out by over 2000 workers. Adani also contended that he has spent billions on buying construction machinery and has commenced demolition of the railway quarters which will serve as the project’s starting point.
