Fitch affirms Aveng

Fitch Ratings said it affirmed Aveng Ltd.'s national long-term rating at A(zaf) and national short-term rating at F1(zaf).

The outlook is stable.

The ratings continue to be supported by Aveng's strong liquidity position, which remained superior to most of its domestic peers at the end of financial year 2010, Fitch said.

The group maintained a net cash position in excess of ZAR 7.4 billion at 2010, which continues to provide the company with a high degree of financial flexibility, the agency said.

While Fitch said it places strong reliance on Aveng's current surplus cash position, the agency said a significant portion of this could be eroded through share repurchases, distributions and acquisitions. That could ultimately place pressure on the current ratings, the agency said.

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