Adani Group's troubles keep growing as financial and legal headwinds get stronger

Adani Group is staring at trouble on several fronts as investors and partners rethink ties with the Indian conglomerate in the wake of bribery and fraud accusations by U.S. authorities.

Projects and investments tied to the Indian conglomerates' businesses spanning across the world have come under the spotlight, following the U.S. indictment of its billionaire founder on bribery and fraud charges last Thursday.

"The US indictment is likely to constrain the group's access to new financing in the near term, particularly in the offshore capital markets, Leonard Law, a senior credit analyst at Lucro Analytics told CNBC. The group has denied any wrongdoing.

The allegations are "more serious" than those from short-seller Hindenburg Research's report in 2023, and the legal proceedings are likely to be protracted,he added.

Fitch Ratings has put several dollar bonds issued by Adani Group companies on its negative ratings watchlist, which means the bonds could potentially be downgraded.

The action reflects higher corporate governance risk and "potential contagion risk" that could affect access to funding and liquidity.

Following the bombshell indictment last week, which triggered a selloff in the conglomerate's stocks, Kenyan president William Ruto scrapped airport and electricity deals worth about $2.5 billion with the group, Reuters reported.

In another blow to the conglomerate, French energy giant TotalEnergies, on Monday suspended new investments linked to Adani Group and claimed it was not informed of the investigation into the alleged corruption scheme. 

"Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as