 "Ratings")
It is not just equity investors who look for a strong parentage while subscribing to an initial public offering (IPO). In fact, lenders have also been extending funds to subsidiaries, which may have been overrated owing to a strong parentage.
As of March 2019, Rs 26 trillion worth of debt was rated at above investment grade, courtesy parent support. The catch, however, is that this parent support is not explicit.
According to data available with Business Standard, across the seven ratings agencies in the country, 231 subsidiaries had a rating of A or above as of March 2019. The combined debt of
