Amid the ongoing crisis post the US SEC allegations on the Adani Group, J P Morgan said it does not see “any signs of stress” across the key listed businesses of Adani. It also said most of them have leverage of less than five times.

Further in a note, the US-based firm also rated four Adani Group bonds ‘overweight.’

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Three of these bonds were issued by Adani Ports and Special Economic Zone (APSEZ), and one by Adani Electricity Mumbai.

JP Morgan said that it was ‘neutral’ on the five other bonds and ‘underweight’ on a bond issued by Adani Green Energy in its report.

Furthermore, according to the report, in terms of the overall debt mix, most of the bond-issuing Adani entities have significant exposure to offshore debt, including bonds and loans.

Adani Green has about 44% exposure to offshore debt as of the end of financial year 2024 (FYE24), while APSEZ has about 82 per cent, mostly via $ bonds. The total foreign currency borrowings account for about 85% of the total debt.

JP Morgan said that APSEZ has the least share of secured debt, with about 77% of the total debt as of FYE24 being unsecured, which mostly comprises the $ bonds.

Other Adani Group bonds are secured in nature and have various covenants, including a cash flow waterfall mechanism, distributions linked to graded Debt Service Coverage Ratios (DSCRs), and other debt sizing covenants, which offer protection from cash leakage out of project companies.

Notably, the nearest repayment for APSEZ is of $290 million due in January 2025.

Additionally, there is offshore debt repayment of about $300 million for Adani Cement coming up in March 2025.