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Fitch Ratings has revised the outlook on Azure Power Energy (Azure RG3) US dollar bond to negative, from stable, and has affirmed the rating at ‘B’.
It said this action follows the bribery and corruption investigation under the Foreign Corrupt Practices Act and the indictment of certain former board members and former executives of Azure Power Global Limited (AGPL) by the US Securities and Exchange Commission and Department of Justice.
AGPL is the holding company of Azure RG3.
The rating agency said the negative outlook reflected the heightened refinancing risk of Azure RG3’s US dollar bond due August 2026 should there be further developments relating to the ongoing charges and indictment against AGPL’s prior executives and board members.
While the charges and indictment did not cover APGL or its current board members or employees, “but any charges or penalties could disrupt APGL’s funding plans and liquidity, including the refinancing of Azure RG3’s bullet maturity,” Fitch said.
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