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 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.