IL&FS group stocks plunge up to 14% on rating cut

NEW DELHI: Shares of Infrastructure Leasing & Financial Services (IL&FS) group companies tumbled up to 14 per cent Monday after rating agency ICRA downgraded loan and debentures of infrastructure financing firm IL&FS.
IL&FS Transportation Networks slumped 13.79 per cent, IL&FS Investment Managers dived 10.99 per cent and IL&FS Engineering and Construction Company plunged 6.55 per cent on the BSE.
The three stocks hit their respective 52-week lows in intra-day trade.
Rating agency ICRA Sunday downgraded loan and debentures of infrastructure financing firm IL&FS to 'default risk' citing liquidity pressure on the group on the back of sizeable repayment obligations.
The ratings of IL&FS, which has reportedly defaulted on payment, is kept under rating watch with developing implications.
The long-term rating of IL&FS' Rs 5,225 crore non-convertible debenture programme and the Rs 350 crore term loans has been cut to 'BB' from 'AA+'.