Eros Media tanks 20%, hits 52-week low on CARE downgrade

NEW DELHI: Hitting their lower circuit limit, shares of Eros International Media (EIML) cracked 20 per cent to its 52-week low at Rs 53.10 in Thursday's session after a downgrade by rating agency CARE.

CARE cut the creditworthiness of the entertainment firm, citing delays or likely defaults in serving debt availed from banks.

It has 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 company tapped a credit line of Rs 750 crore through a combination of long-term and short-term bank loans, and other forms of bank credit.

The downgrade will likely hit EIML’s fundraising plans.

CARE interacted with EIML's bankers. The defaults/delays included both principal repayments and interest payments. In some cases, delays extended to more than 30 days for servicing the interest on cash credit and packing credit and a delay of more than 30 days in payment of bills.