Adani Group Back in Global Spotlight: Bank of America Gives Overweight Ratings to Key Bonds

Oneindia

The Adani Group is once again making global headlines after Bank of America initiated credit coverage on its companies, giving an “Overweight” rating to key bonds, a strong signal of investor confidence. The move comes after years of scrutiny following the 2023 short-seller report and the 2024 U.S. DOJ indictment. Bank of America highlighted Adani’s robust cash flows, strong access to funding, bond buybacks, and regulatory stability as major strengths. With no credit downgrades in three years and improved debt ratios, the Adani Group appears to have rebuilt global trust.    #AdaniGroup #AdaniEnterprises #AdaniPorts #AdaniTransmission #AdaniPower #AdaniGreen #AdaniElectricity #AdaniNews #AdaniUpdate #BankOfAmerica #AdaniBonds #IndianEconomy #AdaniStocks #GautamAdani #GlobalMarkets #AdaniInfrastructure #IndianBusiness #StockMarketIndia #AdaniInvestment #AdaniGrowth  Also Read  BofA Initiates Coverage on Adani Group with ‘Overweight’ Rating, Cites Strong Fundamentals :: https://www.oneindia.com/india/bank-of-america-initiates-credit-coverage-on-adani-group-012-7914091.html?ref=DMDesc  Adani Green Talks 2025 Showcases Purpose-Driven Innovation in Technology and Social Impact :: https://www.oneindia.com/india/adani-green-talks-2025-social-innovation-awards-012-7870711.html?ref=DMDesc  'Satyamev Jayate': Adani Turns SEBI Clearance Into Call for Growth :: https://www.oneindia.com/india/gautam-adani-comments-sebi-verdict-validation-governance-012-7869541.html?ref=DMDesc    ~PR.152~HT.408~ED.420~

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00:00the adani group is back in the spotlight this time with a major vote of confidence from one

00:18of the world's top financial institutions bank of america has started credit coverage on adani

00:24group companies giving overweight ratings on key bonds including adscz 31s and 32s adinco 31s adtin 36

00:35and adanem 30s in simple terms this means bank of america believes these adani bonds are worth buying

00:42and are likely to perform better than the broader market bank of america notes five key takeaways

00:48the adani group's access to funding remains strong both in india and globally its ongoing bond buyback

00:55show financial maturity markets still price in a governance premium meaning there's room for

01:01revaluation cash flows remain robust supporting expansion and debt reduction regulatory frameworks

01:07offer good protection and refinancing visibility this move is significant because it comes after

01:13a turbulent two years following the 2023 short seller report and the 2024 u.s department of

01:19justice indictment despite all that the adani group has shown strong fundamentals steady operations and

01:25stable access to funding in fact there have been no credit downgrades in three years which shows

01:31confidence in the group's management and financial discipline let's look at the numbers

01:36in the financial year 2025 the adani group's ebitda that's earnings before interest taxes depreciation and

01:46amortization hit around 898 billion rupees or about 10.5 billion u.s dollars over 80 percent of this

01:55came from its core infrastructure businesses ports power and energy here's a quick look at individual

02:01businesses adani ports india's biggest private port operator fy25 ebitda up 14 to 184 billion rupees

02:10leverage down to 2.4 times and capital spending set to double adani international container terminal

02:17a joint venture with msc boasting a 54 profit margin and expected leverage of just one time by fy 28

02:26adani transmission india's leading private transmission and distribution utility with state regulatory

02:32returns adani electricity mumbai distributes power in mumbai backed by qia with a 25 percent stake

02:39returns remain healthy at 15 to 17 percent adani green joint venture with total energies focused on

02:47renewable energy with secure long-term counterparties the company has also reduced its debt burden sharply

02:54its net debt to ebitda ratio has improved to 2.6 times down from 3.8 times in 2019 this means the group

03:02now earns more compared to what it owes to strengthen its finances adani raised over six billion dollars

03:09through refinancing and equity infusions india's market regulator sebi cleared 22 out of 24 probes with

03:15no adverse findings while credit rating agencies like fitch and snp have revised their outlooks to stable or

03:23positive adani also bought back over 400 million dollars worth of bonds helping tighten spreads and improve its debt

03:30maturity profile adani bonds are still trading cheaper than other asian investment grade peers

03:36even though adani's balance sheet is stronger this suggests there's room for bond prices to rise

03:42with a potential 20 to 40 basis points tightening upside

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