(Repeat for additional subscribers)
Feb 14 (The following statement was released by the rating agency)
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.
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 below.
Link to Fitch Ratings' Report: Turkish Lira Fall Threatens Companies With FX