Anonymous Complainant Had Blown The Whistle That ICRA Top Bosses Assigned High Ratings To IL&FS And Subsidiaries
[ By Bobby Anthony ]A Serious Fraud Investigation Office (SFIO) report has stated that an anonymous complaint had alleged that there were lapses when ICRA had assigned high 'AAA' ratings to IL&FS and its subs8idiaries.It may be recalled that India Ratings and Research Pvt Ltd, ICRA and Credit Analysis and Research Ltd (CARE) had assigned IL&FS the highest rating of 'AAA', even when...
A Serious Fraud Investigation Office (SFIO) report has stated that an anonymous complaint had alleged that there were lapses when ICRA had assigned high 'AAA' ratings to IL&FS and its subs8idiaries.
It may be recalled that India Ratings and Research Pvt Ltd, ICRA and Credit Analysis and Research Ltd (CARE) had assigned IL&FS the highest rating of 'AAA', even when its subsidiary, IL&FS Transportation Networks Ltd, defaulted in June 20189.
The SFIO Serious Fraud Investigation Office (SFIO) report has revealed the modus operandi of the collusion.
Based on details provided by IFIN and on the basis of interactions with IL&FS managing director as well as top brass, rating agencies used to provide compromised ratings to IFIN financial instruments.
The SFIO investigation report has stated that for carrying out their analysis rating agencies relied upon audited financial statements of IFIN and based all their rating decisions upon the same documents.
It has been revealed from credit rating committee memorandums and notes that IFIN used to provide its financial results, asset classification, analysis of assets, investment profiles, credit histories, restructured accounts, details of top borrowers, liquidity, risk profile as well as resource profile.