New Delhi: S&P Global Ratings on Thursday put out its ESG assessment Adani Transmission Ltd (ATL) ‘under review’ after a US short-seller raised governance issues at the billionaire-run group Gautam Adani, When monitoring environmental, social and governance (ESG) ratings, S&P uses the term ‘under review’ (and the label ‘UR’) to identify certain ESG ratings that are potentially affected by changing events.
“We will be closely monitoring developments, including any investigations by Indian regulators and any additional disclosures Adani GroupS&P Global Ratings said in a statement.
The Adani group has been under pressure since Hindenburg Research On 24 January it accused him of accounting fraud and stock manipulation, allegations the group denied as “malicious”, “baseless” and a “planned attack on India”.
The group’s listed companies have lost over $125 billion in market value in the last three weeks. Shares of most of the group companies rose on Thursday.
The ratings agency said, “The allegations relating to group governance and disclosures may affect the appetite of fund providers and business partners to support ATL’s growth. This may lead to increased financial and operational risks for the company.”
ATL is India’s largest private power transmission and distribution company. The Adani family holds 74.19 per cent stake. It operates 18,795 circuit km of transmission lines and also owns a 500 MW coal-fired power plant.
“S&P Global Ratings today placed its ESG rating of 63 for India-based Adani Transmission Limited (ATL) under review,” the statement said. “This follows recent allegations of significant governance issues at Adani group companies.”
Many of the allegations relate to disclosure and action at the shareholder level. Since then, equity and bond prices for group entities including ATL have declined.
It added, “Our current assessment of ATL’s governance factors in controlling shareholder weight in decision-making, including related-party transactions. Common parenting and name-sharing also expose ATL to reputational risks from the wider Adani group.” exposes.”
S&P said it aims to complete its ESG assessment review in the coming months. “We will assess the impact of the allegations on our ESG assessment.”
“We will be closely monitoring developments, including any investigations by Indian regulators and any additional disclosures Adani GroupS&P Global Ratings said in a statement.
The Adani group has been under pressure since Hindenburg Research On 24 January it accused him of accounting fraud and stock manipulation, allegations the group denied as “malicious”, “baseless” and a “planned attack on India”.
The group’s listed companies have lost over $125 billion in market value in the last three weeks. Shares of most of the group companies rose on Thursday.
The ratings agency said, “The allegations relating to group governance and disclosures may affect the appetite of fund providers and business partners to support ATL’s growth. This may lead to increased financial and operational risks for the company.”
ATL is India’s largest private power transmission and distribution company. The Adani family holds 74.19 per cent stake. It operates 18,795 circuit km of transmission lines and also owns a 500 MW coal-fired power plant.
“S&P Global Ratings today placed its ESG rating of 63 for India-based Adani Transmission Limited (ATL) under review,” the statement said. “This follows recent allegations of significant governance issues at Adani group companies.”
Many of the allegations relate to disclosure and action at the shareholder level. Since then, equity and bond prices for group entities including ATL have declined.
It added, “Our current assessment of ATL’s governance factors in controlling shareholder weight in decision-making, including related-party transactions. Common parenting and name-sharing also expose ATL to reputational risks from the wider Adani group.” exposes.”
S&P said it aims to complete its ESG assessment review in the coming months. “We will assess the impact of the allegations on our ESG assessment.”