After being stung by the Hindenburg report and accusations of fraud, the Adani Group lost as much as $140 billion and is yet to recover despite investments. It has tried everything from stake sales, to loan prepayments and a relentless PR push to reverse its fortunes, but investors and agencies remain concerned.
Even as Adani stocks rebounded after hitting red on Tuesday, ratings agency Fitch has flagged a risk of contagion at two group firms.
No upgrades till concerns are addressed
Citing governance issues at the parent group, Fitch warned of a risk to the financial flexibility of Adani Transmission and Adani Ports and SEZs.
It stuck to a BBB- (stable) rating for the two Adani firms, until all concerns are addressed and resolved.
This comes a month after Fitch said that its ratings of Adani haven't been affected at all by Hindenburg Research's allegations.
Airport at lower risk
At the same time, Mumbai Airport and Adani Electricity are at a lower risk of contagion, since they are backed by structural upgrades.
Over the past few days, Adani has also been hit by reports about renegotiating a debt for ACC and Ambuja Cement.
Another media report claiming that Adani hadn't repaid all share-backed loans, also hurt the group's position in the stock market.
