Zee Entertainment Enterprises fell 2.19% to Rs 287.60 after credit rating agency, Brickwork Ratings, downgraded the firm's 6% cumulative redeemable non-convertible preference shares and issuer rating.
Zee Entertainment Enterprise (ZEEL) after market hours yesterday, 18 November 2019, informed that Brickwork Ratings India downgraded its credit rating for both the instruments to 'BWR AA+' from 'BWR AAA', with outlook as "credit watch with negative implications".
The downgrade in the rating 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 capitalization and promoter group's inability to repay full debt against pledge of ZEEL shares as per committed timelines. The rating, however, continues to factor in the established track record of promoters of over two 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.
Shares of Zee Entertainment Enterprises gained 4.29% in the past two trading sessions to settle at Rs 294.05 yesterday, 18 November 2019, from its close of Rs 281.95 on 14 November 2019.
Zee Entertainment Enterprises' consolidated net profit soared 41.8% to Rs 548.21 crore on 7.4% rise in net sales to Rs 2,122.01 crore in Q2 September 2019 over Q2 September 2018.
Zee Entertainment Enterprises is a media and entertainment company engaged in providing broadcasting services. The company operates through content and broadcasting segment and offers content in multiple languages and offers approximately 38 international and over 30 domestic channels.
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