ICRA to hire external experts to address IL&FS rating issue


The Investment Information and Credit Rating Agency (ICRA) has said that it has sought the help from external experts to address the issues pertaining to credit rating of crisis-hit Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries.


ICRA said in a regulatory filing on quarterly earnings that, “The company is in the process of addressing certain matters related to credit rating assigned to one of its customer and its subsidiaries, and an anonymous representation.”

The board of directors has appointed external experts to look into the aforesaid and related matters, which are currently on going.

“Based on the work done till date, the company has made provision on a prudent basis with regards to the adjudication proceedings, while, apropos the representation, no findings have yet been identified,” it said.

ICRA had informed in December that it has received a notice from market regulator SEBI (Securities and Exchange Board of India) to conduct the adjudication proceedings in relation to credit ratings assigned to Infrastructure Leasing & Financial Services (IL&FS) and one of its subsidiaries IL&FS Financial Services.

“These proceedings are under…SEBI Act, 1992, which deals with potential imposition of monetary penalty,” it said in the investor communication presented on December 19, 2018.

The IL&FS came under the scanner of multiple regulators besides SEBI post defaults in debt obligations as well as matters related to financial disclosures and corporate governance.

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