India Filmmaker Loses 32% in Value Over Two Days on Debt Worries

Eros International Media Ltd. plunged Friday, bringing its two-day slump to 32% after Care Ratings downgraded the company’s creditworthiness, citing delays or likely default in servicing of bank loans, Bloomberg News reported. The filmmaker’s Indian-listed stock suffered a rapid erosion in market value this week after Care cut the long-term bank facilities rating 10 notches to D, or default from BBB-, a move that brought back memories of the steep downgrades last year at Infrastructure Leasing & Financial Services by Moody’s Corp.’s local unit. The company’s downgrade came on the same day the Indian unit of S&P Global Inc. reduced Dewan Housing Finance Corp.’s rating to default after the mortgage lender missed debt payments. Dewan’s shares slumped 11% on Thursday. India’s financial system has been facing cash woes since last year when multiple defaults by IL&FS forced the government to intervene and exposed weaknesses in the shadow banking sector. Read more