Educomp frozen on lower circuit

Educomp Solutions hit a new 52-week low at Rs.42.95, the stock is frozen at this 5% lower circuit.

The stock is down after rating agency CARE, downgraded its rating on bank facilities to default.  CARE has downgraded the company as it expects the company to default soon. This downgrade has been done given the ongoing delays by the company in the servicing of its debt obligations pertaining to the bank facilities on account of a significant deterioration in the company's liquidity position and financial risk profile during the year ended FY13.