Moody’s Ratings said it has reaffirmed the ratings of seven Adani group companies but has changed the outlook on all seven issuers to negative from stable.

The affected companies are Adani Green Energy Limited Restricted Group 1 and 2, Adani Transmission Step-One, Adani Transmission Restricted Group 1, Adani Electricity Mumbai, Adani Ports and Special Economic Zone and Adani International Container Terminal.

The special purpose vehicles that have been affected by the negative ratings actions are Adani Green Energy (UP), Parampujya Solar Energy, Prayatna Developers, Wardha Solar (Maharashtra) , Kodangal Solar Parks, Adani Renewable Energy (Rj), BarmerPower Transmission Service Limited; Raipur-Rajnandgaon-Warora Transmission, Sipat Transmission, Thar Power Transmission Service, Hadoti Power, and Transmission Service, Chhattisgarh-WR Transmission.

“These rating actions follow the indictment of Adani Green Energy Ltd’s (AGEL) chairman Gautam Adani and several senior management team members by the US Attorney’s Office in a criminal case and the filing of charges by the US Securities and Exchange Commission (SEC) in a civil case,” Moody’s said.

The change in the outlook on the seven Adani entities to negative considers the indictment Adani and other senior Adani executives on bribery and other charges, which will likely weaken Adani Group’s access to funding and increase its capital costs, the agency said.

“The rating action further recognizes the possibility of broader weaknesses in the governance structure across the rated Adani group entities as well as potential operational disruptions, including on their capital spending plans, while legal proceedings are going.”

 “Our main focus over the outlook period will be on the potential implications to the group companies’ operations and access to capital from the ongoing legal proceedings as well as the group’s strategy toward strengthening its governance practices,” it added.

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