India Ratings and Research (Ind-Ra), on Wednesday, said IL&FS Transportation Networks continues to face tight liquidity position amid delay in realisation of pending claims.
The rating agency affirmed its long-term issuer rating at ‘IND D’ on IL&FS Transportation Networks (ITNL), a group company of IL&FS.
Instruments with IND D rating are defaulters or are expected to be defaulters soon.
“The rating affirmation reflects on the continued delays in debt servicing by the company, owing to a tight liquidity position, resulting from delay in realisation of pending claims from various government authorities and delays in undertaking deleveraging initiatives,” Ind-Ra said in a statement.
In March, ITNL informed the bourses that it has defaulted on payment of ₹20.91 crore on principal and interest of non-convertible debentures because of insufficient funds.
Some group companies of IL&FS have defaulted on many debt instruments in the past few months due to insufficient funds. The Group’s total debt stands at over ₹90,000 crore as of October 2018.
In December, IL&FS Group announced sale of equity stakes in its road assets to raise funds and initiated the process of exploring divestment of IL&FS Group’s equity stakes in road assets.