Credit rating agency, India Ratings & Research has downgraded Educomp Solutions’ long-term issuer rating to ‘BBB’ from ‘A’ with negative outlook. The rating agency has also downgraded the company’s term loans facilities worth Rs 264 crore to ‘BBB’ from ‘A’.
The downgrade has been led by the company’s breach of the rating agency’s negative rating guideline of net adjusted leverage exceeding 4x on a sustained basis on account of its declining revenue and profitability.
Educomp Solution provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates quality products and services. The solution is based on education principles that help them to design education systems.