Liquidity in Adani Bond portfolio stable: JP Morgan

Mumbai: As the dust seems to have settled around Adani Group bonds after the recent US-related developments, global brokerage JP Morgan has said that Adani bond portfolio’s liquidity is stable, giving an Overweight (OW) rating on four bonds of the Adani Group firms.

In a note, JP Morgan gave OW rating on three bonds of Adani Ports and Special Economic Zone (APSEZ) and one of Adani Electricity Mumbai Ltd (AEML), a subsidiary of Adani Energy Solutions.Adani Group bonds have settled after a period of volatility, widening by about 100–200 basis points, it said.

The Group companies liquidity seems stable after accounting for near-term maturities for offshore debt, JP Morgan said, adding that Adani Green Energy Ltd's bond issue will be in focus."The ability to scale and grow using internal cash flows in the case of Adani Ports gives us strong comfort on the intrinsic equity value of such a business, which in turn reduces the scope for credit stress," the note by the global brokerage read.

JPMorgan said the ports-to-power conglomerate's short-tenor bonds saw more spread widening due to higher dollar prices.