More bad news for IL&FS! Ratings cut to lowest level as debt woes worsen

The Indian infrastructure finance and construction firm that has rocked the nation’s credit markets with rare defaults had some of its credit ratings cut as low as they can go, as more debt deadlines loom.

Infrastructure Leasing & Financial Services Ltd., which helped fund India’s longest tunnel, started missing deadlines on short-term debt instruments late last month. In light of those developments, ICRA and Care Ratings cut their scores on several debt instruments of the firm to D on Monday, indicating actual or imminent default.

“The liquidity profile of the group has been under pressure given the delays in fund raising as initially envisaged, deterioration in credit profile of key investee companies and the sizable repayment obligations at group level in the near term,” Moody’s Investors Service unit ICRA said in an emailed statement.