Jain Irrigation shares plunge 16% after Fitch downgrades long term issuer rating

Jain Irrigation Systems shares tanked about 16 percent to day's low of Rs 21.40 on Tuesday after Fitch Ratings downgraded the company’s long-term issuer default rating to ‘CCC-‘ from ‘B-' rating earlier.

At 11:10 AM, the stock was down 13.15 percent to Rs 20.15 per share on the National Stock Exchange.

In its report, Fitch Ratings said, “Jain Irrigation’s (JISL) liquidity risk has increased significantly over the last few months since 31 March 2019. We estimate that weaker operating cash flow after 31 March, coupled with markedly reduced headroom under working capital lines and cash balance has resulted in heightened liquidity- and refinancing risks for JISL.”