Fitch rates Hayleys' proposed debentures ‘AAA(lka)’

Fitch Ratings has published the National Long-Term Rating of ‘AAA(lka)’ for Sri Lankan conglomerate Hayleys PLC’s (AAA(lka)/Stable) proposed senior unsecured redeemable debentures of up to Rs.7 billion.

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The proposed debentures are rated in line with Hayleys’ National Long-Term Rating and reflects Fitch’s view that ultimate subordination risk to debenture holders from secured debt at the holding company and debt at subsidiaries, which will rank ahead of the debentures. The proceeds from the debentures will be used to repay the company’s existing short-term debt, it said in a rating commentary.

Hayleys’ rating reflects its large operating scale and diversification across several prominent businesses. Its significant export earnings drive sustainable operating cash flow, despite temporary challenges in some segments. We forecast the company’s financial profile to remain commensurate with its rating over the next two years.