Infrastructure Leasing & Finance Services (IL&FS) defaulted in their repayment obligations to the banks that owed them money.
It defaulted in repayment of bank loans, term and short-term deposits. Additionally, it failed to meet its commercial paper redemption obligations that were due. Furthermore, the company reported that it had received notices from banks for delays and defaults in repaying some of the inter corporate deposits accepted by it.

Resultantly, credit rating agency ICRA downgraded the ratings of IL&FS’ short-term and long-term borrowing programmes. The ratings of the parent entity IL&FS were downgraded multiple notches from AA+ to BB on September 8, 2018, and then to D on September 17, 2018.

Similarly, its short-term rating was downgraded from A1+ to A4 on September 8, 2018, and then to D on September 17, 2018.

The aforementioned ratings downgrade were for the group company. However, the downgrades came aplenty for the debentures and/or CP of several other group entities:

- IL&FS Financial Services
- IL&FS Tamil Nadu Power Company Limited
- IL&FS Energy Development Company Limited
- IL&FS Transportation Networks Ltd
- IL&FS Education & Technology Services Ltd