PRESS RELEASE: Fitch: Tunisia-Based CTIA Rating Watch Negative
Fitch Ratings-Tunis/London-24 November 2009: Fitch Ratings has today
maintained Canado-Tunisienne des Activites Agroalimentaires' (CTIA) National
Long-term rating of 'CC(tun)' on Rating Watch Negative (RWN) and placed the
National Short-term rating of 'C(tun)' on RWN.
The RWN relates to the continued delay in the publication of CTIA's audited
financial accounts for FYE08. Whilst the company has been able to cover its
liquidity requirements to date, uncertainties remain over the company's ability
to fund its ongoing operational and investment needs. Fitch will maintain the
RWN status over the coming weeks until the agency has been able to review CTIA's
FYE08 audited financial statement and discussed the company's ongoing liquidity
profile and funding needs and arrangements for 2010 with management.
The RWN on the National Long-term rating was originally initiated on 16
December 2008 and reflected the agency's concerns regarding the company's
critical liquidity position due to the pending set up of credit lines and an
equity injection from shareholders.
The tomato processing project budgeted initially for a total cost of TND3.3m
has faced TND1.3m of cost overruns, whilst working capital needs of around TND1m
per year to date were significantly underestimated by the management while
revenue progression and profitability were considerably lower compared to
expectation. CTIA has taken positive steps since then to strengthen its
liquidity position in 2009. The company's shareholders have provided TND2.2m in
the form of an equity injection and local banks have provided TND1.5m in the
form of medium-term loans and another TND4.0m of short-term back up lines.
CTIA is a Tunisian/Canadian company that processes vegetables into cans. The
company started its operations in 2007. Its production exclusively serves export
markets in Canada, the US and Europe.
Contacts: Kalthoum Sammari, Tunis, Tel: + 216 71 840 902; Wassel Madani: + 216
71 840 902.
Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email:
peter.fitzpatrick@fitchratings.com.
Note to Editors: Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with relatively low
international sovereign ratings and where there is demand for such ratings. The
best risk within a country is rated 'AAA' and other credits are rated only
relative to this risk. National ratings are designed for use mainly by local
investors in local markets and are signified by the addition of an identifier
for the country concerned, such as 'AAA(tun)' for National ratings in Tunisia.
Specific letter grades are not therefore internationally comparable.
Additional information is available at www.fitchratings.com.
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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://
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AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC
WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES
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(END) Dow Jones Newswires
11-24-091104ET
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