Fitch affirms El Mazraa at BBB(tun)

Fitch Ratings said it affirmed Tunisia-based turkey meat producer El Mazraa's national ratings at long-term BBB(tun) and short-term F3(tun).

The outlook remains stable.

Fitch said the ratings reflect El Mazraa's deep-rooted market position, which has held up well despite the adverse impact of the bird-flu threat. El Mazraa continues to consolidate its predominant position on the Tunisian market for turkeys, thanks to its reputation for sound hygiene and food security.

Concerns remain over the vulnerability of its operational environment, the risk of an epidemic that could affect poultry operations and unfair competition from the informal sector. The ratings are also constrained by tight liquidity due to heavy debt repayment schedule - about TND3.3 million per year, with an annual installment of TND2 million to pay off a bond loan.

However, Fitch said El Mazraa should be able to meet its obligations with its TND1 million cash position at FYE05 and undrawn TND2 million committed overdraft facility.

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