New Delhi, December 6, 2024 (Navroze Bureau) – US investment banker JP Morgan has given ‘overweight’ rating to four bonds of Adani Group. This rating means that the bond will outperform. The rating agency said that the company has the ability to increase volume and growth using internal cash flow, which reduces the scope of debt pressure. In a report, JP Morgan gave ‘overweight’ rating to three bond issues of Adani Ports & SEZ and one bond of AdaniElectricity Mumbai Limited (a subsidiary of Adani Energy Solutions Limited). It has adopted a neutral stance on five other bonds of Adani and is ‘underweight’ on one bond of Adani Green Energy Limited.
JP Morgan gives three types of ratings for bonds – ‘overweight’ rating, which falls in the category of buy, ‘neutral’ rating which reflects status quo, and ‘underweight’ rating which falls in the category of sell. Regarding the risk, it said that if there is a quick resolution of the allegations of bribery against Adani Group founder chairman Gautam Adani and others by the US Securities and Exchange Commission (SEC) and the Justice Department, it will get more good bids for the upcoming bonds and refinancing will be possible. Along with this, the operating performance will improve. Adani Group has termed the allegations leveled against it by US officials as baseless.