CreditSights finds errors in Adani report
CREDITSIGHTS, part of the Fitch Group, said it had discovered calculation errors in its recent debt report on two power and transmission companies controlled by India's richest person, Gautam Adani, after a conversation with the management.
Debt research firm CreditSights' report late last month calling the conglomerate ‘deeply overleveraged‘ and flagging other risks had sent shares of many Adani companies down.
In a report dated Sept. 7, CreditSights said that it had spoken with Adani Group's finance and other executives and reconciled some figures for Adani Transmission and Adani Power.
‘(Adani's) Management views that the group's leverage is at manageable levels, and that its expansion plans have not been mainly debt funded,' CreditSights said.
But CreditSights said on Thursday it still had concerns about the Adani group's overall debt levels.
For the Adani group as a whole, ‘we still stand by our original financial calculations and credit ratios, which leads us to remain concerned over the Adani Group's leverage,' CreditSights said in an email to Reuters.
The Adani Group said on Thursday debt ratios of its companies ‘continue to be healthy and are in line with the industry benchmarks of the respective sectors'. Adani also said that over the past decade, the group had worked to improve its ‘debt-metrics through our capital management strategy'.
Shares of Adani Transmission and Adani Power closed up around 1 percent each on Thursday )8), while five other group companies ended lower in a broadly positive Mumbai market.