India a very well-regulated financial market – Finance Minister
Allaying fears about regulatory control of financial markets amid the Adani-Hindenburg row, Indian Finance Minister Nirmala Sitharaman called India a “very well-regulated financial market.”
Quoting the senior executives of SBI and LIC, the Finance Minister, speaking to the media said that they are not overexposed to Adani group stocks.
“They have very clearly said that their exposure (to Adani Group stocks) is very well within the permitted limits and with valuation falling as well, they are still over profit. That is the word from the horse’s mouth,” she said
- No immediate impact on the ratings: Fitch
Earlier in the day, credit ratings agency Fitch dispelled concerns about Adani Group’s companies, and said that there is no immediate impact on the ratings of the Fitch-rated Adani entities and their securities following the report by U.S.-based short-seller. It added that it expects no material changes to its forecast cash flow.
In its commentary, Fitch informed that there are also no near-term significant offshore bond maturities, reducing refinancing risks and near-term liquidity risks.
- No significant maturing debt until FY2025 for Adani’s rated entities: Moody’s
Credit rating agency Moody’s said that adverse developments are likely to reduce the Adani Group’s 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,” the agency added.
It said that 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.
