Fitch places HMGT on Rating Watch Negative

Fitch Ratings Lanka has on December 10 placed Hayleys MGT Knitting Mills PLC’s (HMGT) National Long-term rating of ‘BBB+(lka)’ on Rating Watch Negative (RWN).

The rating action reflects Fitch’s view that HMGT’s recent industry trends, financial results and corporate announcements in November and December 2010 on provisions made with regard to inventory and accounts receivables may warrant a negative rating action. Fitch will resolve the rating watch following the conclusion of the ongoing review.