Fitch places Hoang Anh Gia Lai on rating watch negative

Fitch Ratings has placed Vietnam-based property developer Hoang Anh Gia Lai JSC's (HAGL) 'B' Long-Term Foreign and Local Currency Issuer Default 'B' Ratings on Negative Watch. Its 'B-' senior unsecured rating and the 'B-' rating on its USD90m notes have also been placed on Negative Watch. The Recovery Rating on the notes is unaffected at 'RR5'.

The Negative Watch reflects HAGL's continued tight liquidity, with its real estate inventory as of 31 March 2012 little changed from end-2011 levels. Also, HAGL's new non-property businesses of iron ore mining, hydro power and plantations are yet to start generating meaningful revenues. Its cash balance as of 31 March 2012 was substantially lower at VND1.7trn, compared with VND2.9trn as of 31 December 2011 due primarily to capital expenditure of VND1.6trn incurred during Q112.

The ratings may be downgraded if HAGL's cash balance continues to shrink as of end-June 2012. Conversely, the ratings may be affirmed if HAGL improves its unencumbered cash balance to VND3trn and if its new businesses start generating meaningful revenues.

reuters

>   SDA: Explanation for difference in financial statement Year 2011 before and after auditing (31/05/2012)

>   ORS: Results of Annual General Meeting of Shareholders 2012 (31/05/2012)

>   S91: Results of Annual General Meeting of Shareholders 2012 (31/05/2012)

>   ICF: Resolution of AGM 2012 (31/05/2012)

>   SHI: Explanation for fluctuation in Q1/2012 consolidated profit (31/05/2012)

>   PHT: Resolution of extraordinary shareholders meeting 2012 (31/05/2012)

>   TCL: Announcement of changes in business license (31/05/2012)

>   APG: Results of General Meeting of Shareholders 2012 (31/05/2012)

>   VNI: Resolution of the 2012 Annual General Meeting (31/05/2012)

>   IJC: Resolution of Annual General Meeting 2012 (31/05/2012)