ICRA has downgraded the short-term rating for the ₹4,000 crore commercial paper programme of IL&FS Financial Services (IFIN) to ICRA D from ICRA A4.
‘The rating has been removed from rating watch with developing implications,” ICRA said.
“The rating revision takes into account the recent irregularities in debt servicing by the company driven by material weakening of the company’s liquidity profile and lack of funding support from parent. IL&FS had planned to raise ₹4,500 crore equity through rights issue and ₹3,500 crore long-term credit line from its shareholders. These plans, however, are yet to be finalised,” ICRA said.
ICRA has also downgraded the long term rating for the ₹5,225 crore non-convertible debenture programme and ₹350 crore term loans of Infrastructure Leasing & Financial Services (IL&FS) to ICRA d from ICRA BB. ICRA has also downgraded the short term rating for the ₹2,500 crore commercial paper programme of IL&FS to ICRA D from ICRA A4. The ratings have been removed from watch with developing implications, ICRA said.
