Indian authorities have spent the week containing the collateral damage from a major infrastructure lender struggling to service $12.6 billion in debt. Next up: Figuring out why the nation’s credit rating agencies didn’t see the crisis coming.
IL&FS Group is a vast conglomerate with a complex corporate structure that funds infrastructure projects across the world’s fastest-growing major economy. The financier, set up in 1987, and its listed subsidiaries have powered India’s infrastructure boom-- including the Chenani-Nashri road tunnel, India’s longest--and raised billions of dollars from the country’s corporate debt market.
In July, company founder Ravi Parthasarathy stepped down, citing health reasons. In August a default within the group rattled India’s money markets, added to pressure on corporate bond yields and sparked a sell-off in the stock market. The Reserve Bank of India has initiated a specia
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