Moody's Downgrades Worsen Adani Crisis

Moody's downgraded on Friday the ratings outlook for some Adani Group companies, while MSCI said it would cut the weightings of some in its stock indexes, the latest blows for the Indian conglomerate plunged into crisis by a short-seller's report, Tanvi Mehta, Scott Murdoch, and Rodrigo Campos reported for Reuters.

Photo Insert: The Adani Group has already secured the legal services of a big US law firm that specializes in corporate disputes and dubious reports of financial irregularities in huge companies.

Both developments would hit Adani hard, the way the disclosure by the Norwegian sovereign wealth fund that it had dumped shares worth $200 million from three subsidiaries of the Adani Group.

The wealth fund is actually the world’s biggest stock investor and its retreat from the Adani Group would likely spur sell-offs by other investors.

The Adani Group has already secured the legal services of a big US law firm that specializes in corporate disputes and dubious reports of financial irregularities in huge companies.

The group rebutted accusations by short-seller Hindenburg that the Adani Group has been engaged in financial hanky-panky, window dressing and offshore financial transfers.

India's market regulator is also investigating Adani Group's links to some of the investors in the conglomerate's aborted $2.5 billion share sale, two sources said, amid growing concern in New Delhi about a US short-seller's allegations against one of the country's top industrial groups.

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