In the wake of U.S. bribery allegations against top executives of India’s Adani Group, the country faces a reckoning with an economic model that has allowed a small group of entrepreneurs to grow fabulously rich.

The rating agency cites governance concerns and potential operational disruptions following the indictment of Adani’s chairman and senior executives over bribery charges

In March, Adani Group's head of corporate finance wrote an email to one of its lenders, calling as "baseless" a media report on the group's alleged bribery investigation in the United States. That email was also marked to top finance executive Sagar Adani.

US prosecutors have indicted Gautam Adani, his nephew Sagar and other defendants for paying over USD 250 million in bribes between 2020 and 2024 to Indian government officials to win solar energy contracts can be Credit Negative for the group companies.

Moody's has revised its outlook for Adani Group companies. The US bribery scandal and Gautam Adani's indictment triggered the action. Several Adani companies face a negative outlook.

The downgrade comes in the wake of legal troubles involving Gautam Adani, the chairman of Adani Group, and his associates after charges of bribery by US authorities.