India's financial markets are facing a 'trust deficit' and disruptions due to defaults by a major non-banking finance company which could put a strain on weaker firms, S&P Global Ratings said Wednesday. Spreads have widened, and short-term borrowing costs have spiked since Infrastructure Leasing & Financial Services (IL&FS), an infrastructure development and finance company with a high domestic rating, defaulted on loan repayments in August and September. Corporate governance concerns are adding to risk aversion. "India's financial markets are facing a trust deficit. The disruption could put a strain on weaker companies as well as finance companies," S&P Global Ratings credit analyst Geeta Chugh said. In its report titled 'A look at whether India Inc can handle the liquidity crunch in debt capital markets', S&P said rated Indian companies are relatively well-positioned to withstand the stress in India's debt capital markets that ensued after a major ...
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Thursday, 1 November 2018
Markets face trust deficit, IL&FS crisis may strain weaker finance cos: S&P
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