S&P

"The negative outlook reflects the risk of a deterioration in the credit profile of Adani Ports and Adani Electricity Mumbai due to governance risks and funding challenges for the larger Adani Group," it said. The rating agency said a short-seller report alleging significant governance issues for the Adani Group, many of which relate to disclosures and actions at the shareholder level, has triggered a sharp fall in Adani Group entities' equity and bond prices.

"Pakistan's already low foreign exchange reserves will remain under pressure throughout 2023, barring a material decline in oil prices or a step-up in foreign assistance," S&P analysts Andrew Wood and YeeFarn Phua wrote, The News reported. The country also faces elevated political risks which may affect its policy trajectory over the next year.

However, renewables are relatively more exposed to rising rates due to large capital expenditure. The report do not expect any default in the rated portfolio, which benefits from access to domestic banks and capital markets. "Banks will not be immune, but we expect that in the stress scenario NPLs could rise modestly," the report added.

The demand for May was some 80,000 barrel higher than its growth forecast, partly due to stronger-than-expected demand for transportation and the government's announcement of a cut in excise duty on patrol by Rs 8 per litre and Rs 6 per litre on diesel, which provided some support for demand. On a year-on-year basis, demand growth was driven by diesel, petrol and other minor products, which were up 416,000 barrels per day, 282,000 barrels per day and 161,000 barrels per day, respectively.

That said, North American supplies could face more competition in the second quarter as refiners will continue picking up barrels from the non-OPEC supplier until they remain outside sanctions and are available at substantial discounts.

The issuer credit rating remains 'SD' given the continuing default on the onshore bank borrowings, the rating agency said. According to S&P Global Ratings, the termination of the proposed sale of assets to Reliance Retail Ventures Ltd (RRVL) has magnified the risk of a default on the next coupon payment on the rated notes, and of the initiation of bankruptcy proceedings against the company.

In its new report "India Renewables: Growth Trumps Deleveraging" S&P Global Ratings said the multi-decade growth opportunities for renewable energy in India will result in persistently high leverage across the sector. "Weaker operating performance, delayed receivables collections and high capital expenditure will weigh on credit profiles for Indian renewables," said S&P Global Ratings analyst Abhishek Dangra.