CRISIL downgrades bonds of IL&FS Transportation Networks unit to 'D'

Invocation of NCLAT's stay order by JRPICL to withhold regular debt payment is a reversal of the management's previous stance

CRISIL has downgraded the rating of Jharkhand Road Projects Implementation Company Limited’s (JRPICL’s) non-convertible debentures (NCDs) from ‘BB (SO)’ to ‘D’ over non-payment of interest and principal. JRPICL is a subsidiary of IL&FS Transportation Networks Ltd (ITNL), and part of the Infrastructure Leasing and Financial Services Ltd (IL&FS) group.
 
The downgrade reflects non-payment of interest and principal on CRISIL-rated NCDs that were due on January 21, 2019, as confirmed by the trustee (IDBI Trusteeships Ltd) and investors. This is due to non-adherence to the structured payment mechanism, despite adequate funds in JRPICL’s escrow account.
 
CRISIL had earlier said