Eros International locked in 20% lower circuit after CARE downgrade

CARE also downgraded the rating on the short-term bank facilities worth Rs 187 crore to 'D' from 'A3' earlier

Shares of Eros International Media were locked in the 20 percent lower circuit at Rs 53.10 on June 6 after rating agency CARE downgraded the rating on its bank facilities.

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The company in its June 5 filing said CARE revised its rating on company's long-term bank facilities (term loan Rs 300 crore and cash credit of Rs 263 crore) down to 'D' from 'BBB-' each while keeping the outlook stable.

The agency also downgraded the rating on its short-term bank facilities worth Rs 187 crore to 'D' from 'A3' earlier.

In a clarification note on June 6, Eros said the rating 'D' is on account of a delay in servicing of bank loans for April and May, which will be cleared within the next seven working days.

The company further clarified that its utilization is less than Rs 550 crore as compared to Rs 750 crore facilities assessed by the rating agency as per the bank's sanctioned letters.

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