Shares of Eros Media hit lower circuit after credit rating agency CARE lowered its long-term loan facilities to ‘D’ or default from ‘BBB-‘.

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At 09:25 AM, the stock was down 19.95 percent at Rs 53.15.

In last one month, Eros Media stock has declined 20 percent and in the last one year, it has plunged 60 percent.

The company tapped a credit line of Rs 750 crore through long-term and short-term bank facilities along with credit cash.

CARE Ratings revised its rating for cash credit to ‘D’ from ‘BBB-‘, and short-term bank facilities to ‘D’ again from earlier ‘A3’ rating.

In its research report, the rating agency said, “As per the management, the delays/ default in debt servicing is on account of slowdown in collection from debtors leading to cash flow issues in the company.”

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