Fitch Withdraws DYH's and Hurriyet's Ratings

Hurriyet Gazetecilik ve Matbaacilik

22/07/2014 17:06

(The following statement was released by the rating agency)

LONDON, July 22 (Fitch) Fitch Ratings has withdrawn Turkey-based Dogan Yayin 
Holding's (DYH) and subsidiary Hurriyet Gazetecilik ve Matbaacilik AS's 
(Hurriyet) Long-term foreign and local currency Issuer Default Ratings (IDR) at 
'BB-'  and Hurriyet's National Long-term Rating at 'A+(tur)'. Both ratings 
remained on Rating Watch Negative prior to withdrawal. 

DYH is in the process of merging all of its assets and liabilities with its 
parent company Dogan Holding. The transaction remains subject to the approval of 
the shareholders of both entities at the annual general meetings scheduled in 
August 2014. 

The ratings were withdrawn as DYH has chosen to stop participating in the rating 
process. As a result, Fitch does not have sufficient information to resolve the 
Rating Watch before withdrawal. Accordingly, Fitch will no longer provide 
ratings or analytical coverage of DYH and Hurriyet. 

KEY RATING DRIVERS

DYH has market-leading positions in the Turkish media sector, which is currently 
experiencing healthy growth trends in advertising as well as increasing 
penetration rates of pay-TV services. Nonetheless, DYH's credit profile is 
constrained by its limited cash flow generation, weak liquidity profile and 
significant foreign currency exposure through its USD and EUR-denominated debt 
and operating expenses. Fitch notes that Dogan Holding, with which DYH is 
merging, has a significant cash position.

Hurriyet's credit profile is supported by strong legal ties with its parent DYH. 
DYH guarantees Hurriyet's debt, which Fitch views as sufficient to justify the 
equalisation of the ratings of the two entities in accordance with its "Parent 
and Subsidiary Rating Linkage" criteria. Fitch believes the two entities also 
share strong operational and strategic ties, as Hurriyet carries out printing 
and distribution operations for other entities of the DYH group. This, combined 
with Hurriyet's high visibility in the Turkish news media sector, makes it 
likely that DYH would support one of its major assets, in case of need. 

Contact: 

Principal Analyst

Giovanni Reichenbach

Associate Director

+44 20 3530 1255

Supervisory Analyst 

Damien Chew, CFA

Senior Director

+44 20 3530 1424

Fitch Ratings Limited

30 North Colonnade

London E14 5GN

Committee Chair

Stuart Reid

Senior Director

+44 20 3530 1085

Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: 
peter.fitzpatrick@fitchratings.com.

Additional information is available on www.fitchratings.com. For regulatory 
purposes in various jurisdictions, the supervisory analyst named above is deemed 
to be the primary analyst for this issuer; the principal analyst is deemed to be 
the secondary. 

Applicable criteria, Corporate Rating Methodology: Including Short-Term Ratings 
and Parent and Subsidiary Linkage (28 May 2014), are available at 
www.fitchratings.com.

Applicable Criteria and Related Research: 

Corporate Rating Methodology - Including Short-Term Ratings and Parent and 
Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

Additional Disclosure 

Solicitation Status 

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=840918

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