Brickwork Ratings downgrades IL&FS Maritime Infra Company's bank loans

Irregularities in debt servicing by parent IL&FS has weakened support for the subsidiary

Brickwork Ratings has revised the rating for IL&FS Maritime Infrastructure Company Limited's bank loan facilities worth Rs 5.29 billion to BWR C (very high risk of default in timely service of obligation) from BWR BB (BWR double B, indicating moderate risk of default).

The agency said it has revised the rating after factoring irregularities in the debt-servicing ability of parent IL&FS (Infrastructure Leasing & Financial Services Limited), continued elevated debt level and liquidity pressure at the group and delay in raising funds from the promoters of IL&FS. This has completely impaired the parent entity's ability to adequately support IL&FS Maritime