India's Core Education shares fall on S&P action
Reuters: Mumbai, Mar 05 2013, 11:10 IST
Shares in India's Core Education & Technologies Ltd fall 3.2 percent after Standard & Poor's Ratings Services on Monday placed its "B-plus" long-term corporate credit rating of the company on CreditWatch with negative implications.
S&P cited Core's recent steep share price drops, noting that some of the selling had come from controlling stakeholders.
"We believe the drop in share price may negatively affect Core's reputation and could limit the company's access to funding and liquidity through banks and the capital markets," S&P said.
S&P added that Core's negative free operating cash flow would also increase dependence on additional borrowing, "underscoring the importance of good and steady access to funding."
Core Education slumped 78 percent last week on fears that shares held by high net worth individuals were being heavily sold because of margin funding issues.
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