Fitch: Hayleys view to negative

Fitch Ratings said it affirmed Hayleys plc's national long-term rating at AA-(lka), and removed it from Rating Watch negative.

A negative outlook was assigned.

The negative outlook mainly reflects concerns with regards to the continuation of Hayleys increased leverage levels at its holding company, post the acquisition of the Alumex group, Fitch said.

The strong financial profiles and ability to extract higher dividends than what was paid historically from some of Hayley's key divisions act as mitigating factors to the holding company's increased leverage levels at this time, the agency said.

Fitch also said it takes comfort from the management's expected strategies of further cash inflows in the near-term to the holding company through asset sales and other measures.

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