Moody's cuts rating outlook on four Adani companies to negative

NEW DELHI: Moody's Investor Service on Friday revised downwards the rating outlook on four Adani Group companies to negative from stable after a significant and rapid decline in market value following a report by US-based short seller Hindenburg Research.

In a statement, Moody's said the rating outlook for Adani Green Energy Ltd, Adani Green Energy Restricted Group, Adani Transmission Step-One Ltd and Adani Electricity Mumbai Ltd has been changed to negative from stable.

"These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the Group," it said.

OPINION: Gullible investors and the market sharks

The news comes a day after Norway's $1.2 trillion sovereign wealth fund, the world's largest, said it has completely divested its assets in the troubled conglomerate.

The fund, which is set up to put the country's oil and gas revenues to work, held some $200 million worth of shares in the group at the end of 2022.

It had a stake of 0.14 percent in Adani Green Energy, 0.17 percent in Adani Total Gas and 0.3 percent in Adani Ports & Special Economic Zone.

ALSO READ | Adani Group hires US law firm in fight against Hindenburg: Report

"Since year-end, so the five weeks since year-end, we have further reduced our exposure in Adani companies significantly," said Christopher Wright, the head of environmental, social and governance (ESG) risk monitoring at the fund.

"So today for all intents and purposes, we have no exposure left," Wright added.