Indian billionaire Gautam Adani’s conglomerate is “deeply leveraged” as the group invests aggressively across existing and new businesses, said Fitch Group unit CreditSights, warning of a potential default of one or more group companies.
The investments are predominantly funded with debt, resulting in elevated leverage which has “understandably caused concerns about the Group as a whole,” said the report which was released on Tuesday. “In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a enormous debt trap, and possibly culminate into a distressed situation or default of one or more group companies,” the authors warned.
