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CARE downgrades ratings for IFCI's subordinated bonds

Net losses, under capitalization are cause for worry

Once again, IFCI is in the eye of a storm
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Abhijit Lele Mumbai
Rating agency CARE ratings has downgraded ratings for government-owned finance company IFCI Ltd’s subordinated bonds from “BBB” to “BBB-“ on deterioration in capitalization and net loss in nine months ended December 2018 (9MFy19).

CARE also downgraded long term loan facilities while retaining negative outlook on bonds and bank facilities.

The revision in the ratings factor in further deterioration in capitalization profile of IFCI due to absence of capital infusion from GoI in current financial year till date. The net loss reported during nine months (9M FY19) and continuing adverse impact on net worth due to implementation of Ind AS from current financial

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First Published: Feb 25 2019 | 9:41 PM IST

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