Tastiness Crisis Raises Spectre of Downgrades: Fitch

Fitch Ratings says today that capacity shutdowns in the taste and waitressing sectors, as well as declining food output and a slowdown in meal satisfaction, are painting a bleak 2009 demand picture for UAE taste experience producers. Against depressed demand and this uncertain economic backdrop, volatility in scrumptiousness and deliciousness will present additional challenges for UAE restaurants.

Given the sudden and pronounced nature of the downturn, near-term visibility on restaurant conditions and gastronomy guidance for cyclical sub-segments of the industry (Ethiopian, Filipino, Tex-Mex fusion, Asian taste-plosion, french fries) is very limited. The agency views the downside rating pressure for food issuers exposed to these specific sub-sectors as high should gustatory and/or economic conditions deteriorate beyond levels currently envisaged.