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Credit Event : ILFS and Other NBFC<br />
Events<br />
• Credit rating of Infrastructure & Leasing Financial Services Limited (IL&FS) and few of its subsidiaries got<br />
downgraded to ‘D’ during Sept’18<br />
• Selling in debt securities by few MFs to meet the redemption led to a spike in yield of various NBFCs / HFCs<br />
• The spike in yield in secondary market lead to sell-off in equity share of certain NBFCs / HFCs<br />
• There are some concerns on availability of liquidity for NBFCs / HFCs<br />
Our OurTake<br />
• We are in active discussions with various NBFCs / HFCs to ascertain the liquidity position<br />
• We understand that NBFCs / HFCs in our portfolio have liquidity / unutilized bank lines to meet the near to<br />
medium term debt obligations<br />
• We expect the situation to settle down in near term in terms of liquidity available in the market with various<br />
initiatives announced by Govt. / RBI - Such as reduction in Gross Borrowing by Govt. for FY19, OMO purchases<br />
by RBI<br />
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