More trouble for IL&FS as ICRA downgrades rating for its various units

Rating agency ICRA has downgraded rating for various group companies of IL&FS, showing cascading effect of liquidity pressure and leverage faced by group holding company and power sector entity.

The rating action follows the significant weakening of the financial risk profile of the parent company-IL&FS Energy Development Company Ltd (IEDCL) and the ultimate holding company Infrastructure Leasing & Financial Services Ltd (IL&FS).

ICRA has downgraded the long term rating for nonconvertible debentures of IL&FS Solar Power Ltd from "A_"- (SO)" to "BBB(S0)". SO stands for the Structured obligations on parent to pay.

ICRA also reassigned the longterm rating for debentures of IL&FS Wind Energy Limited (IWEL) from "A+" to "BB+". This instrument also carries Structured obligations. The outlook on the rating has been revised from Stable to Negative, ICRA said in statement.

The debentures of IL&FS Tamil Nadu Power Company Ltd downgraded from "A+" to "BBB". The outlook on the ratings is revised from Stable to Negative.

ICRA has downgraded the rating for structured nonconvertible debenture (NCDs) of IL&FS Transportation Networks Ltd (ITNL) from "AA(SO)" to  "BB (SO)". The rating continues to remain in the ‘Issuer Not Cooperating’ category, ICRA said.