Hayleys becomes first Sri Lankan firm to secure S&P foreign currency rating

Hayleys PLC has achieved a historic milestone by becoming the first Sri Lankan corporate to receive a foreign currency issuer credit rating from S&P Global Ratings, securing a 'B+' rating that exceeds the country's sovereign rating.

Hayleys PLC has made history as the first Sri Lankan corporate entity to obtain a foreign currency issuer credit rating from S&P Global Ratings, achieving a 'B+' rating with a Stable Outlook. Notably, this rating surpasses Sri Lanka's own sovereign rating of 'CCC+', reflecting the conglomerate's financial resilience and operational strength relative to the broader economy.

The rating agency attributed the achievement to Hayleys' substantial export earnings, operational diversity, and demonstrated ability to navigate periods of sovereign economic stress. S&P highlighted that the company generates half its revenue internationally, with significant contributions from the United States (10%), Europe (10%), and Asia (25%). Key export products include gloves, activated carbon, and tea. The ratings agency noted that Hayleys maintained current obligations even during Sri Lanka's 2022-2023 currency crisis and debt default, during which the company's EBITDA grew by 71% due to export revenues benefiting from rupee depreciation.

S&P forecasts Hayleys will achieve revenue growth of 13%-14% in fiscal 2027, followed by annual growth of 9%-10% thereafter, with EBITDA expanding by 10%-12% annually over the next two to three years. The company is expected to invest Rs. 40-50 billion annually during 2027-2028, primarily in expanding its purification and hand protection operations. The ratings agency emphasized that Hayleys' position as Sri Lanka's largest conglomerate, with leading market positions in retail, textiles, and logistics, provides competitive advantages that support financial stability.

However, S&P noted that upward rating movement remains limited by Hayleys' dependence on local currency revenue and potential regulatory risks, including possible capital or foreign currency controls on exporters.