Moody’s cuts rating of Eros’ US Holding Company
The rating downgrade reflects Eros Plc’s strained liquidity profile.
By ET Bureau |
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Mumbai: A week after CARE downgraded Indian film studio Eros International Media’s creditworthiness to default, Moody's Investors Service too has downgraded the corporate family rating for the NYSE-listed holding company Eros International Plc (Eros Plc) to B2 from B1, with the outlook changed to negative from stable.
In its report, Nidhi Dhruv, vice president at Moody’s and a senior analyst, wrote, “The rating downgrade reflects Eros Plc’s strained liquidity profile, which led to delays in servicing the bank loans of its Indian subsidiary, Eros International Media India.”
On June 6, Eros International Media, where Eros Plc owns 62.4 per cent, agreed that there were delays in the payment of interest on its bank loans for April and May 2019.
“Nonetheless, the delays in timely debt servicing exacerbates our concerns over the complex and multi-jurisdictional group structure, which has inhibited the timely movement of cash within the group entities,” said Dhruv.
In its report, Nidhi Dhruv, vice president at Moody’s and a senior analyst, wrote, “The rating downgrade reflects Eros Plc’s strained liquidity profile, which led to delays in servicing the bank loans of its Indian subsidiary, Eros International Media India.”
On June 6, Eros International Media, where Eros Plc owns 62.4 per cent, agreed that there were delays in the payment of interest on its bank loans for April and May 2019.
“Nonetheless, the delays in timely debt servicing exacerbates our concerns over the complex and multi-jurisdictional group structure, which has inhibited the timely movement of cash within the group entities,” said Dhruv.
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