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

Shares of Zee Entertainment 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.