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Journalism of Courage
Shares in India8217;s Core Education amp; Technologies Ltd fall 3.2 percent after Standard amp; Poor8217;s Ratings Services on Monday placed its 8220;B-plus8221; long-term corporate credit rating of the company on CreditWatch with negative implications.
Samp;P cited Core8217;s recent steep share price drops,noting that some of the selling had come from controlling stakeholders.
8220;We believe the drop in share price may negatively affect Core8217;s reputation and could limit the company8217;s access to funding and liquidity through banks and the capital markets,8221; Samp;P said.
Samp;P added that Core8217;s negative free operating cash flow would also increase dependence on additional borrowing,8221;underscoring the importance of good and steady access to funding.8221;
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.
