The unravelling of IL&FS, the debt-laden infrastructure financing and construction company, has hurt the credibility of rating agencies, said Corporate Affairs Secretary Injeti Srinivas Thursday.
India Ratings & Research, ICRA, and Credit Analysis and Research Ltd gave IL&FS the highest rating of AAA when the company’s subsidiary, IL&FS Transport Networks, defaulted in June, said Srinivas at the annual summit of the Confederation of Indian Industry in New Delhi.
Rating agencies suddenly downgraded bonds sold by IL&FS and related entities when they defaulted on payment obligations in September. Bonds went from high investment grade–AA+ in some cases–to default or junk.
