Fitch: Turkish Corporate Ratings at Risk from Prolonged Lira Decline

Turcas Holding

14/02/2014 07:00

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: Turkish Lira Fall Threatens Companies With FX 
Mismatches   

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=734935

LONDON/DUBAI/PARIS, February 14 (Fitch) Fitch Ratings says in a new report that 
Turkish corporates could see their financial profiles weaken under a 30% Turkish 
lira depreciation scenario.

The report evaluates the effects of the Turkish lira depreciation on 10 publicly 
rated Turkish corporates, and the possible negative implications for their 
ratings. The first part of the report focuses on a straightforward calculation 
and the effects on leverage metrics, assuming the initial impact of a 30% fall 
of the Turkish lira against a basket of currencies since end-2012 and shows the 
effects on publicly rated Turkish issuer's gross leverage (gross debt/EBITDA). 

The second part of this report focuses on each issuer's individual FX exposure, 
and natural hedging mechanisms in detail, providing a broader view of the 
depreciation effects on gross leverage and profitability. 

The companies covered in the report are in manufacturing, food and beverage, TMT 
and energy industries. They are:

Yasar Holding A.S.

Hurriyet Gazetecilik ve Matbaacilik A.S.

Dogan Yayin Holding AS

Turcas Petrol A.S.

Coca Cola Icecek

Merinos Hali Sanayi ve Ticaret A.S.

Arcelik

Turkiye Petrol Rafineileri A.S. (Tupras)

Yuksel Insaat AS

Habas  Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S

The report, "Fitch: Turkish Lira Prolonged Decline in the Currency Would Put 
Pressure on Ratings", is available from www.fitchrratings.com or by clicking on 
the link above.

Contact:

Bashar Al Natoor

Director

Corporates

+971 4 424 1242

Al Thuraya Tower 1

Office 1805

Dubai Media City 

Cigdem Cerit

Associate Director

Corporates

+90 212 279 1011 

Frederic Gits

Managing Director

Corporates

+33 1 44 29 91 84

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

Additional information is available on www.fitchratings.com.

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