Brickwork Ratings India Private Limited ('Brickwork') had vide its letter of Friday, November 15, 2019, intimated Zee Entertainment Enterprises Limited about Credit Rating Downgrade in connection with 6% Cumulative Redeemable Non-Convertible Preference Shares & the Issuer rating.
The rating on 6% Cumulative Redeemable Non-Convertible Preference Shares has been revised from BWR AAA (Credit Watch with Negative Implications) to BWR AA+ (Credit Watch with Negative Implications).
The issuer rating has been revised from BWR AAA (Credit Watch with Negative Implications) to BWR AA+ (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 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.
Shares of ZEE ENTERTAINMENT ENTERPRISES LTD. was last trading in BSE at Rs.294.05 as compared to the previous close of Rs. 287.5. The total number of shares traded during the day was 443262 in over 5218 trades.
The stock hit an intraday high of Rs. 298.1 and intraday low of 287.45. The net turnover during the day was Rs. 130196816.