IL&FS faces more embarrassment as Ind-Ra downgrades MF schemes
Mumbai: Crippled IL&FS group faced Tuesday more embarrassments after India Ratings downgraded its various mutual fund schemes and placed them on a rating watch negative (RWN).
The agency downgraded three series-1, three series- 2 and two series -3 mutual fund schemes of the group, "due to the deterioration in the underlying portfolio quality of the schemes due to its exposure to IL&FS group entities.
The RWN reflects absence of clarity on the resolution of the above referred assets in the portfolio due to the poor financial profile of the sponsor group, which IL&FS, it said.
All IL&FS IDF schemes generally have an exposure of around 23.55 per cent in group companies --IL&FS Solar Power and IL&FS Wind Energy, whose credit profile has weakened.
IL&FS and its group companies are facing liquidity crisis and had defaulted on debt repayments.