An Indian irrigation company has been cut to default by S&P Global Ratings after it failed to pay interest on its green dollar bond, in a further sign that stress among local firms is spilling over into the nation’s offshore debt market.
Jain Irrigation Systems Ltd. missed an interest payment due last month on the $200 million of notes maturing in 2022, issued by its unit Jain International Trading BV. S&P said that it cut its rating on the company and the notes to D after the 30-day grace period for meeting the obligation ended March 3.
An official at the company wasn’t immediately available to comment.
A crisis in India’s credit markets that began following a default by infrastructure lender the IL&FS Group in 2018 has squeezed access to funds for weaker companies. The prolonged cash crunch has increased the pace of company defaults. Jain’s operations might continue to suffer due to lack of adequate liquidity to manage its debt servicing and working capital, S&P said.
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