Fitch Assigns Hayleys First-Time AAA(lka) National Rating; Outlook Stable

Fitch Ratings has assigned Sri Lankan conglomerate Hayleys PLC a National Long-Term Rating of 'AAA(lka)'. The Outlook is Stable.

Fitch has also assigned a 'AAA(lka)' National Long-Term Rating to Hayleys' senior unsecured debentures. The rating reflects Hayleys' large operating scale locally as a result of extensive business and geographical diversification, and strong market share in most of its businesses.

"We believe this will lead to steady operating cash flows. We expect Hayleys to maintain a measured approach to debt-funded acquisitions amid a weak domestic operating environment and high borrowing costs," the rating agency said.

"This should keep its credit metrics adequate for the rating. Hayleys' debentures are rated at the same level as the issuer rating as we expect the company to maintain prior-ranking debt, including debt at its subsidiaries and secured debt at the company, below 2.0x-2.5x, the threshold above which we may consider downgrading the notes' rating.