Eros hits 10% lower circuit limit on Moody's downgrade

NEW DELHI: Hitting their lower circuits on BSE, shares of Eros International Media plunged 10 per cent to Rs 33.25 in Wednesday's session and extended their losing streak into the fifth consecutive session.

In these five sessions, the stock has come off over 44 per cent.

Shares of the company extended their fall after the rating agency Moody's Investors Service downgraded the corporate family rating for Eros International Plc to B2 from B1 while changing the outlook to negative from stable.


Shares of the company have been falling since last Tuesday. On Wednesday, rating company CARE cut its creditworthiness, citing delays or likely defaults in serving debt availed from banks.

CARE lowered the long-term loan facilities to ‘D’ or default from BBB-, a plunge in grades by several notches reminiscent of the sharp downgrades at infrastructure conglomerate IL&FS. The downgrade is likely to hit the company’s fundraising plans.

Meanwhile, Eros International Plc on Monday announced an up to $20 million buyback of shares of its New York-listed entity.