Moody’s Investors Service has revised the ratings outlook for four entities within the Adani Group to ‘stable’, marking a shift from the previous ‘negative’ rating assigned a year ago after a report by short-seller Hindenburg Research.

In a statement, the rating agency announced the revised outlook for Adani Green Energy, Adani Green Energy Restricted Group (AGEL – RG-1), Adani Transmission Step-One, and Adani Electricity Mumbai.

Additionally, Moody’s affirmed a stable rating for four other Adani Group companies: Adani Green Energy Restricted Group (AGELRG-2), Adani Ports and Special Economic Zone (APSEZ), Adani International Container Terminal (AICTPL), and Adani Energy Solutions Limited Restricted Group 1 (AESL RG1).

The move comes after Moody’s had downgraded the outlook for these companies to negative in February 2023, citing concerns over their capital accessibility and potential rise in capital costs. This adjustment followed the release of a report by the short-seller, which raised governance concerns regarding the Adani Group. The downward revision had triggered substantial declines in the market value of the Adani Group entities, according to Moody’s.

Since then, the group has executed several debt transactions, including refinancing and acquiring new loan facilities, demonstrating its continued access to debt capital at favorable rates. Additionally, notable equity transactions involving major institutional and strategic investors, such as GQG and Qatar Investment Authority, underscored the group’s ongoing access to equity markets.

While an investigation by the Securities and Exchange Board of India (Sebi) remains ongoing, the Supreme Court’s decision to assign the regulator to conclude the inquiry into the Adani Group, coupled with the court's acknowledgment of no apparent regulatory lapse by Sebi, has mitigated potential downside risks, Moody’s noted.