Adani Group has sufficient liquidity and operational cash flows to meet its debt obligations and planned capital expenditures in the medium term, said CRISIL Ratings on Friday.

The Adani Group, which has the flexibility to reduce certain discretionary capital expenditure (capex) depending on developments in financial markets and future capital availability, has a healthy Ebitda and cash balance that reduces its dependence on external debt to sustain operations, it said in a bulletin. The agency rates Adani group’s infrastructure and holding entities.

“CRISIL Ratings has taken note of these developments and their likely impact on the financial flexibility of the group, including the fall in the market capitalisation of the listed companies of the group, movement in bond yields, and calling off the $600 million bond offering of AGEL,” it said.

CRISIL emphasised that the group’s ratings are supported by its strong business and financial risk profiles. These factors include steady cash flows, long-term infrastructure assets, and its critical role within India’s infrastructure sector. The group’s association with the larger Adani Group also provides additional financial flexibility.

While CRISIL acknowledged the Adani Group’s financial stability, it also highlighted potential risks. Any adverse regulatory or judicial actions, or restrictions on accessing domestic and international capital, could affect the group’s financial flexibility.

The United States Department of Justice and the US Securities and Exchange Commission (SEC) issued an indictment and a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against Gautam Adani, Sagar Adani and Vneet Jaain, key functionaries of Adani Green Energy Ltd (AGEL).

The Adani Group had refuted the bribery allegations saying, “Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC.” Crisil also said any adverse regulatory, judicial or government action may exacerbate the situation.

“Thus, these actions will be monitored. Further, any fall-out of developments restricting the Adani Group’s access to domestic and international capital and hampering its ability to refinance upcoming bullet repayments as well as a significant increase in its cost of financing will also be key monitorables”.