Fitch cuts Hayleys to AA-(lka)

Fitch Ratings said it downgraded Hayleys plc's national long-term rating to AA-(lka) from AA(lka).

The outlook is stable.

The downgrade reflects Hayleys' sustained high debt levels and leverage, as well as its high interest costs that have increased significantly owing to higher interest rates, Fitch said.

The company's ratings also reflect the relatively weak cash flow generation of most of its operating companies, owing to their highly working capital intensive nature, the agency said, and exposure to vagaries of weather, commodity prices and currency risk.

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