The Adani group’s troubles deepened on Tuesday as two more credit rating agencies cut their outlook for the Indian conglomerate, taking a dim view of the indictment of Gautam Adani and seven other in the US on the charges of bribery, fraud, and governance lapses.

On Tuesday, Moody’s Investors Service downgraded the outlook for seven Adani Group entities to “negative” from “stable,” while Fitch Ratings separately placed bonds of some Adani units on negative watch.

Moody’s affirmed its ratings for Adani Ports and Special Economic Zone, two restricted groups of Adani Green Energy, Adani Transmission Step-One Ltd, Adani Transportation Restricted Group 1, Adani Electricity Mumbai Ltd, and Adani International Container Terminal.

The rating agency said the downgrade reflected concerns over potential funding constraints and increased capital costs stemming from the allegations, which include bribery of Indian officials, securities fraud, and violations of U.S. anti-corruption laws.

“The change in outlook considers the indictment of Gautam Adani and senior executives, which may weaken the group’s access to funding and elevate capital costs,” Moody’s said in a statement.

Moody’s added that the allegations could signal broader governance weaknesses across the Adani entities, potentially disrupting operations and capital expenditure plans.

While Moody’s acknowledged that the project-finance entities face limited refinancing risks and modest capital needs, it noted their vulnerability to governance-related fallout and legal risks.

Moody’s ruled out an upgrade in the near term but said the outlook could stabilize if legal proceedings end without significant credit impact and the group strengthens its governance practices. Conversely, downgrades are likely if legal outcomes disrupt operations or access to capital, or if governance issues remain unresolved.

Fitch also raised concerns, placing Adani Energy and Adani Electricity Mumbai Ltd on negative watch due to increased governance risks and potential contagion effects.

“The legal proceedings could significantly weaken the group’s corporate governance practices and funding access,” Fitch said.

Last Friday, S&P had put Adani Ports, Adani Green Energy and Adani Electricity on a downgrade warning.