InvestorQ : Did CreditSights change the view due to errors or was there pressure on them to change?
diksha shah made post

Did CreditSights change the view due to errors or was there pressure on them to change?

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shrinidhi Rajan answered.
3 weeks ago
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We would probably never know the truth, but then it is anybody’s guess. The reasons given by CreditSights are vague and ambiguous. The changes were apparently based on detailed inputs from the CFO of the Adani group. CreditSights claims to have spoken to the senior management at Adani, so why were these points overlooked? In some cases, the final estimates of EBITDA were almost 25% off target and that does not speak too well about the research meticulousness of Fitch group. They were either too careless or likely pressured.

This episode does stir a hornet’s nest. It raises sticky questions about editorial honesty that research firms can and do actually bring to the table. Firms like Fitch depend on business houses for rating and research business and cannot afford to antagonize them beyond a point. It would be naïve to believe that Fitch and CreditSights were not under pressure applied. However, such an insipid volte face speaks poorly about the quality of analysis and editorial integrity. This is not the first time, and will not be the last such volte face.

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