Diversified blue chip Hayleys Plc and Fitch Ratings Lanka Ltd., have parted ways after simmering discontent over their relationship reached the tipping point.
Fitch in an announcement yesterday said that it has withdrawn Hayleys Plc’s A+ rating with a negative outlook and would no longer provide ratings or analytical coverage of Hayleys.
Though Fitch’s announcement came only yesterday, Hayleys said it was the company which terminated the Fitch service.
A company spokesman said the notice of Hayleys Board decision not to avail of Fitch services had been communicated way back on 9 January to Fitch though the rating agency’s announcement came yesterday.
Hayleys has recently got AA-/P1 rating from RAM Ratings Lanka, an associate of Standard and Poor’s.
As exclusively reported by the Daily FT late last year, Hayleys had maintained its displeasure over the manner in which Fitch was evaluating the company among other contentions.
In a separate statement Fitch Ratings Lanka also said it has withdrawn Hayleys MGT Knitting Mills PLC’s (HMGT) ‘BBB (lka)’ National Long-Term rating with a Negative Outlook. On the basis of publicly available information as at 27 February 2012, Fitch notes that HMGT’s credit profile has weakened to a level that is more commensurate with a strong ‘BB(lka)’ category rating, after taking into account existing support from its key shareholder, Hayleys PLC (‘A+(lka)’/Negative; also withdrawn on 27 February 2012). Fitch will no longer provide ratings or analytical coverage of HMGT.