Fitch Maintains Negative Outlook on Adani Energy Amid US Investigations

Fitch Ratings has affirmed Adani Energy Solutions Ltd.'s (AESL) credit rating at 'BBB-' but maintained a negative outlook due to ongoing U.S. investigations that raise concerns about the company's corporate governance. While the firm has been removed from its 'Rating Watch Negative' status, Fitch cautioned that the outcomes of these investigations could reveal governance weaknesses and adversely impact AESL's funding access and growth plans. The investigations stem from accusations against Gautam Adani and other executives regarding significant bribery for Indian power contracts, which the Adani Group has denied. Fitch noted that while AESL's liquidity and funding situation has stabilized, any negative legal findings could lead to a downgrade in its rating. The implications of these governance issues extend beyond AESL, potentially affecting its capital market access and liquidity. Fitch reiterated the importance of governance quality in maintaining investor confidence and business success in a global context.