S&P lifts Arcelik unsecured recovery rating

Standard & Poor's said it affirmed the BB+ long-term corporate credit rating on Arcelik AS.

The outlook remains stable.

The agency also said it affirmed the BB+ rating on Arcelik's senior unsecured notes and revised the recovery rating upward to 3 from 4, indicating 50% to 70% expected default recovery.

The ratings reflect a view that Arcelik's operating performance in 2016 should be stable, thanks mostly to steady revenue growth prospects in Europe and in its domestic market of Turkey, S&P said.

The ratings also consider the company’s flexible operating cost structure, notably in terms of economies of scale and low labor costs, the agency said.

The revised recovery rating is due to the improved recovery prospects following a revision of the company’s enterprise value, S&P said.

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