Portion of Adani Group’s capex is deferrable: Moody’s

Chennai, Feb 3 : Global credit rating agency Moodys Investors Service on Friday said a portion of Adani Groups planned capital expenditure is deferrable.

Moodys also said the adverse developments relating to the Adani Group - rapid decline in market value of the group companys shares- will impact the groups ability to raise capital.

In a note issued on Friday, Moodys said the credit ratings for Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, and Adani Transmission Limited are underpinned by their regulated infrastructure businesses with long-term sales contracts, or their strong operating cash flows and dominant market position.Given the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a short-seller report highlighting governance concerns, our immediate focus is primarily on assessing the rated entities overall financial flexibility, including their liquidity position and access to funding to support refinancing and ongoing growth initiatives, Moodys said.

Nevertheless, these adverse developments are likely to reduce the groups ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years.We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY2025, Moodys added #Adani #capex #deferrable #Moodys #Telugu #TeluguStop #Chennai #Tamil #Kollywood #Chennai .