Standard & Poor’s Ratings Services has raised its long-term foreign currency ratings on Turkcell Iletisim Hizmetleri, the leading Turkish mobile telecoms company, to ‘B’ from ‘B-‘. The outlook is stable.
“The Turkcell upgrade follows Standard & Poor’s recent upgrade of its ratings on the Republic of Turkey to ‘B’ from ‘B-‘, as well as Turkcell’s announcement of sound second-quarter 2003 results, demonstrating the company’s continued cash generation and strengthening liquidity,” says Standard & Poor’s credit analyst Simon Redmond.
Turkcell had total reported debt of US$1bn at <
The ratings on Turkcell reflect the company’s high exposure to foreign currency-denominated debt and to the macroeconomic environment in Turkey . These weaknesses are mitigated by Turkcell’s good business position, sound operating performance, and fair liquidity.
Standard & Poor’s considers that Turkcell is well placed to maintain its leading market position and sustain cash generation and debt reduction. The ratings will continue to be affected, either positively or negatively, by risks relating to Turkey ‘s economic and currency evolution. Downward pressure in the short to medium term might also result from one or more material adverse litigation judgments. The ratings do not currently factor in any material acquisitions.