Fitch rates Zalagh B+(mar)

Fitch Ratings said it has assigned Zalagh Holdings a national long-term rating of B+(mar).

The outlook is stable.

The rating reflects Zalagh's leading position as a domestic commodity trader fully integrated in the animal feed industry and partially integrated in the meat production and processing industry, the agency stated.

Fitch said it expects free cash flow to remain negative in 2014 due to high capex and liquidity to remain stretched.

The rating also reflects Zalagh's limited financial flexibility, but Zalagh may be contemplating accessing the domestic bond market to diversify its funding sources and finance growth capex, which would help support its rating.

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