Fitch cuts Zalagh to B(mar), bonds to CCC+(mar)

Fitch Ratings said it downgraded Zalagh Holdings' national long-term rating to B(mar) from B+(mar).

The outlook is stable.

The agency also downgraded the 2019 bond's national rating to CCC+(mar) from B-(mar), maintaining the view of weak recovery prospects in the event of default.

Fitch said the downgrade follows sharply weaker-than-expected 2014 financial results, due to circumstances that were largely outside of management's control, such as congestion at the main port of Casablanca affecting its grain trading activities and oversupply in downstream turkey slaughtering.

It also reflects the agency’s expectation that the pace of recovery will be gradual, thereby leading to a financial leverage that, if maintained, would result in the capital structure being unsustainable. This could drive further negative rating actions, including a change in the outlook to negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.