Crisil downgrades NCD of IL&FS' Jharkhand road project to junk grade
In another blow to debt-ridden IL&FS Group, Crisil Tuesday downgraded rating on the non-convertible debentures of Jharkhand Road Projects Implementation Company to D (Default) or the junk grade.
Jharkhand Road Projects Implementation Company (JRPICL) is a subsidiary of IL&FS Transportation Networks Ltd (ITNL), which had a rating of BB (SO)/Watch Negative.
"The downgrade reflects non-payment of interest and principal obligations on Crisil-rated NCDs that were due on January 21, 2019, as confirmed by the trustee (IDBI Trusteeships Ltd) and investors. This is on account of non-adherence to the structured payment mechanism, despite adequate funds in JRPICL's escrow account," the rating agency said in a statement.
Rating D is assigned by Crisil to instrument, which are in default or are expected to be in default soon.
Crisil had earlier highlighted heightened risk of default due to reversal in the IL&FS management's earlier stance of maintaining the integrity of JRPICL's ...