India Ratings and Research (Ind-Ra) Friday downgraded Rs 800 crore non-convertible debentures issued by IL&FS Transportation Networks to junk grade 'IND D'.

The downgrade reflects the company's communication to the exchanges about the non-payment of interest obligations on the rated NCDs rated on the due date of January 21, 2019, the company said in a statement.

The default was on account of a continued stretched liquidity profile on account of delays in the realisation of pending claims from various government authorities and delays in undertaking deleveraging initiatives, it said.

Timely debt servicing for at least three consecutive months could result in a positive rating action, it said.

The company's credit metrics thus are likely to remain stretched over the medium term.

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