No immediate impact on Adani entities' ratings after short-seller report: Fitch

Fitch Ratings on Friday said there is no immediate impact on the ratings of Adani entities and their securities following a short-seller report alleging malpractices at Adani group.

In a statement, the rating agency said it expects no material changes to its forecast cash flow.

“There are also no near-term significant offshore bond maturities,” it said.

Stocks continue to fall

This statement came even as Adani Group’s 10 stocks all fell further on Friday morning in Mumbai. Nearly $120 billion, or more than half of Adani Group’s combined value, has been erased since the US-based short seller last week claimed that offshore shell entities were used to inflate Adani Group’s revenues and manipulate stock prices.

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Adani Enterprises Ltd, the flagship company, sank as much as 25 per cent, taking its decline to 66 per cent in seven trading sessions.

Scrapped FPO

Adani had earlier this week scrapped a key stock offering after concerns over the group’s debt load went global following the Hindenburg report. According to some media reports, Adani is in talks with creditors to prepay some loans backed by pledged shares, as some banks stopped accepting the securities of the group that spans from ports to energy as collateral in client trades.

(With Agency inputs)