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Last Updated : Jul 11, 2019 12:06 PM IST | Source: Moneycontrol.com

Cox & Kings at 5% lower circuit; loses 71% in a month after rating downgrade

It has consistently been falling since the close of June 25, 2019

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Cox & Kings share price has fallen 71 percent in last one month after CARE downgraded the company's credit rating to default on delay in interest payment. The stock was locked at 5 percent to trade at a record low of Rs 23.20 on the BSE at 1133 hours IST. There were pending sell orders of 26,88,523 shares, with no buyers available.

It has consistently been falling since the close of June 25, 2019.

The rating agency CARE reaffirmed its rating for the company's commercial paper issues worth Rs 375 crore and 1,685 crore at D and A4, respectively, the travel company said in its BSE filing.

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It downgraded rating from BB with a stable outlook to D for non-convertible debentures issue of Rs 250 crore and also downgraded the rating on long term facilities worth Rs 1,760 crore from BB with stable outlook to C.

On July 1, Cox & Kings had said the working capital situation at company stretched in the last few months and was further affected due to its inability to replace the short term loans with long term loans/regular working capital lines.

"The company is taking required measures to resolve the temporary cash flow mismatch. It is evaluating each business and identifying ways to improve operational performance. The company is focusing on cash flow generation from each business and working at the highest priority to free working capital. The company will also be approaching its lenders to work out some time-bound program to meet this emergency," it added.

Another rating agency Brickwork had also downgraded the rating on the commercial paper issue to D from A1+ and on non-convertible debentures issue to C from AA- with a stable outlook.
First Published on Jul 11, 2019 12:06 pm
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