CRISIL reaffirms strong credit ratings for Adani Group firms

CRISIL Ratings has reaffirmed its strong credit ratings for Adani Group companies in its latest report released on Friday. 

“Adani Group has sufficient liquidity and operational cash flows to meet its debt obligations and committed capex plans over the medium term,” the CRISIL report states.

Despite recent legal developments, including a US indictment followed by materially false and misleading coverage, the agency has maintained a positive outlook on the group’s companies and entities.

The agency highlighted the group's robust financial profile, strong business fundamentals, and diversified infrastructure assets. “These ratings are driven largely by the strength of their business and financial risk profiles. They, among other factors, consider the steadiness of cash flows, the infrastructure nature of assets with long concession periods, and the extent of cash flow cushions,” the CRISIL report stated.

CRISL said that it has rated 28 companies of the Adani Group.

For the fiscal year 2024, the Adani Group reported a healthy EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately Rs 82,917 crore, with a net debt-to-EBITDA ratio of 2.19 times. The group’s cash balance exceeded Rs 53,000 crore across eight listed operating entities as of September 2024.

Additionally, CRISIL noted that certain Adani Group entities benefit from their association with the larger group, which is one of India’s leading infrastructure conglomerates. This affiliation provides additional flexibility and support.

Emphasizing the group's diverse infrastructure portfolio, which spans sectors such as energy, transportation, and utilities, the report pointed out that the group’s strong market position and ability to adjust capital expenditures contribute to its financial resilience.

While acknowledging the potential impact of the ongoing legal proceedings, the agency will continue to closely monitor the situation and any potential regulatory, judicial, or governmental actions that may affect the group's financial position and operations, the report said.