Fitch says, two Adani entities facing ‘heightened contagion risks’

(Reuters) -Ratings agency Fitch said two Adani Group subsidiaries were exposed to “heightened contagion risks”, possibly affecting their financial flexibility, due to weak governance at the parent conglomerate and other companies in the group.

Adani Transmission Ltd and Adani Ports and Special Economic Zone “would be capped at current rating level of ‘BBB-/Stable’ till alleged concerns are ironed out,” Fitch said in an emailed statement on Wednesday.

Short-seller Hindenburg Research’s Jan. 24 report alleged improper use of tax havens and stock manipulation by the ports-to-energy conglomerate – charges it has denied.