S&P keeps Adani Transmission's ESG evaluation 'under review'

New Delhi: S&P Global Ratings on Thursday placed its ESG evaluation for Adani Transmission Ltd (ATL) ''under review' following a US short-seller raising governance issues at the group helmed by billionaire Gautam Adani.

When monitoring environment, social and governance (ESG) evaluations, S&P uses the term 'under review' (and the label UR) to identify certain ESG Evaluations as being potentially affected by changing events.

"We will closely monitor developments, including any investigations by the Indian regulators and any additional disclosures by the Adani group," S&P Global Ratings said in a statement. Adani group has been under pressure since the Hindenburg Research on January 24 accused it of accounting fraud and stock manipulation, allegations that the conglomerate has denied as 'malicious', 'baseless' and a 'calculated attack on India'.

Listed companies of the group lost over $125 billion in market value in the last three weeks. Stocks of most group firms were up on Thursday.

"The allegations related to group governance and disclosures may affect the appetite of fund providers and business partners in supporting ATL's growth. This may raise financial and operational risks for the company," the rating agency said.