IL&FS case: Ratings were allegedly doctored by agencies, says Grant Thornton
MUMBAI: A football match, property deal and contribution to a trust are some of the points flagged by Grant Thornton India where professional judgements of credit ratings agencies were allegedly compromised while they assessed IL&FS group companies.
According to the report, IL&FS Financial Services (IFIN) had invited an official of ratings agency Brickworks to a Real Madrid match in Europe, helped a senior person in Fitch Ratings in negotiating a property deal, and had contributed to Sameeksha Trust – the publisher of the prestigious academic journal Economic & Political Weekly in which former Icra chairman DN Ghosh was associated.
The report cites cases where ratings and rationales were changed after a review and meetings with the company. Sources added the audit firm had also found instances where the ratings were allegedly ‘prepared’ by the erstwhile directors of the company.
