CRISIL Ratings: Adani Group's Financial Fortitude Amid Legal Scrutiny

CRISIL Ratings has affirmed the liquidity and financial robustness of the Adani Group, emphasizing its ability to meet debt obligations amid legal challenges in the US. The group's healthy Ebitda and cash reserve boost its financial flexibility, although the legal proceedings remain under close observation.

CRISIL Ratings, on Friday, offered an endorsement of the embattled Adani Group, affirming its sufficient liquidity and operational cash flows for settling debt obligations and executing committed capital expenditures. The rating agency reported no negative actions from lenders or investors following US legal accusations against the group's founder.

The legal proceedings involve an indictment and a civil complaint filed in a US District Court against Gautam Adani and other key figures of Adani Green Energy Ltd on allegations of securities and wire fraud. Despite the charges, CRISIL highlighted the group's financial flexibility, including a discretionary reduction in capital expenditures, supported by its robust Ebitda and cash balance.

While acknowledging potential risks and market impacts, such as fluctuating market capitalisation and halted bond offerings, CRISIL noted no immediate lender or investor actions affecting the group's operations. The agency continues to monitor developments, underlining the group's financial solvency and capacity to navigate forthcoming challenges smoothly.

(With inputs from agencies.)