Eros International plunges 20% despite clarification on credit rating cuts

The company said the credit rating downgrade was on account of a delay in servicing of bank loans for the month of April and May and would be cleared within the next seven working days.

Shares of Eros International Media on Friday plunged 20 per cent to hit a new low of Rs 42.50 despite the company's clarification on credit rating downgrade by CARE Ratings, which had cut its long-term loan facilities ratings from 'BBB-' to 'D'.

The movies and entertainment company said the rating downgrade was on account of a delay in servicing of bank loans for the month of April and May and would be cleared within the next working days.

Eros International said that "it would like to clarify that its utilisation is less then Rs 550 crore as compared