• 
• 

Published on January 10, 2008

The downgrade reflects the company's weakened financial profile stemming from a significant operating loss in the tuna business and a highly levered capital structure, Tris said. The ratings also consider the competitive and volatile nature of the seafood industry, the company's relatively small size compared with global players, trade barriers implemented by major importing countries and the volatility of the baht.

However, Asian Seafoods' ratings are supported by an experienced and capable management team and a diverse range of products and markets, Tris said.

The rating outlook is negative, reflecting Tris's concern over its financial status. The company is in breach of some lending agreements and is expected to breach others.

Progress in receiving waivers for these obligations and the success of a financial restructuring plan for leverage reduction are two crucial elements that could revise the outlook to "stable", Tris said.

In addition, the company is expected to continue its efforts to revamp its tuna and feed divisions and realise fully the benefits from integrating its feed business, in order to build markets for its tuna business, the rating firm said.

 The Nation