The dilution of controlling stake of the promoter and promoter group which now owns 5 per cent in the company, was also highlighted by the agency.
Two directors Subodh Kumar and Neharika Vora had resigned from Zee's Board last month citing laxity in spending of CSR amounts, non implementation of certain decisions of the Board's earlier meetings among others, hinting at mismanagement in the company.
Apart from Kumar and Vora, Zee informed the exchanges on Wednesday that Sunil Sharma (Independent Director) has resigned subsequent to the sale of shares by the promoter group, and reconstitution of the Board.
Zee Entertainment on Tuesday in an exchange filing said Brickwork Ratings on Monday "intimated the company about Credit Rating Downgrade in connection with 6 per cent Cumulative Redeemable Non-Convertible Preference Shares & the Issuer rating".
"The downgrade in the rating factors the resignation of certain Independent Directors and the Company Secretary, along with dilution of controlling stake of the promoter and promoter group which now owns 5 per cent in the Company and the stepping down of Mr Subhash Chandra as Chairman of the Board who, however, will remain as Non-Executive Director of the Company," the company noted.
"The rating, however, continues to factor in the established track record of promoters of over 2 decades in Indian television broadcasting indus try, apart from the adequate financial profile of the Company as reflected in the increase in scale of operations along with low debt," Brickwork said.
( With inputs from IANS )