Fitch affirms Aveng

Fitch Ratings said it affirmed South Africa-based Aveng Ltd.'s national ratings at long-term A(zaf) and short-term F1(zaf).

The outlook is stable.

The affirmation reflects the company's improved performance during fiscal year 2006 with the cement, steel and manufacturing operations, in particular, recording strong results driven by a buoyant market, Fitch said.

The agency noted that Grinaker-LTA, Aveng's South Africa-based construction operation, continued its loss-making performance following a provision of ZAR156 million for the Marikana Mine dispute, which resulted in an operating loss of ZAR125 million. However, Fitch said, Grinaker-LTA new management's initiative to improve operational efficiency, procurement and risk management should ensure the division's profitability.

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