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Zee Ent slips 3% as Brickwork downgrades preference shares, issuer rating

The downgrade in the rating inter alia factors the deteriorating financial flexibility of the group marked by an increased pledge of promoter holding and continuous volatility in share price movement

SI Reporter  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

Shares of slipped up to 2.7 per cent to Rs 286 on the BSE on Tuesday after Brickwork Rating agency downgraded the company's 6 per cent Cumulative Redeemable Non-Convertible Preference Shares and the Issuer rating.

The revised rating for both the instruments stand at 'BWR AA+', down from 'BWR AAA', with outlook as "credit watch with negative implications".

"The downgrade in the rating inter alia factors the deteriorating financial flexibility of the group marked by increased pledge of promoter holding, continuous volatility in share price movement of the company resulting in substantial decline in market capitalisation and Promoter group's inability to repay full debt against pledge of ZEEL shares as per committed timelines," the agency said in its rationale. READ MORE

"The rating however continues to factor in the established track record of promoters of over 2 decades in Indian television broadcasting industry, apart from the satisfactory financial profile of the Company as reflected in increase in scale of operations along with low debt and adequate cash and cash equivalents in the company," the agency added.

At 9:48 AM, the shares were 1.3 per cent lower at Rs 290.2 apiece, as against a 0.13 per cent rise in the benchmark S&P BSE Sensex.

So far in the calendar year 2019, the stock has slipped 38 per cent.

The revised rating for both the instruments stand at 'BWR AA+', down from 'BWR AAA', with outlook as "credit watch with negative implications".

First Published: Tue, November 19 2019. 09:51 IST
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