Jaiprakash Associates hits nine-year low

The stock dipped nearly 5% to Rs 23.05, its lowest level since June 2005 on BSE.

Jaiprakash Associates has dipped nearly 5% to Rs 23.05, its lowest level since June 2005 on BSE, after the rating agency Credit Analysis & Research (CARE) has downgraded the long-term and short-term bank facilities of the company.

“On the basis of a review of the operational and financial performance of the company for FY14 and H1FY15, the rating committee of CARE has revised the long-term and short-term bank facilities of the company,” Jaiprakash Associates said in a statement.

The rating for long term bank facilities of Rs 19,168 crore has been revised from CARE A- to CARE BBB-. The rating for short term bank facilities of Rs 1,300 crore has been revised from CARE A2 to CARE A3. The rating long/short term bank facilities of Rs 4,812 crore have been revised from CARE A- / CARE A2 to CARE BBB- / CARE A3 respectively.

CARE has also revised the rating on long-term non convertible of debentures of Rs 4,023 crore from CARE A- to CARE BBB-, it added.

The stock opened at Rs 23.95 and hit a high of Rs 24.30 in early morning trade on BSE.  A combined 21.82 million shares changed hands so far on BSE and NSE.