Fitch downgrades Ulker

Fitch Ratings said it downgraded Ulker Biskuvi Sanayi AS' long-term foreign-currency issuer default rating to B from B+ and its senior unsecured rating to B from B+. The recovery rating is RR4. The agency placed all ratings on rating watch negative .

“The rating downgrade reflects our expectation that Ulker's leverage will remain high over 2022-2023 after a material increase in 2021.We expect a continuing weak local currency to inflate the level of debt and its cost, as well as put downward pressure on profits via increased input costs, all of which are mostly denominated in hard currencies. We expect this to both limit the prospects for cash flow generation and deleveraging, despite some mitigation from greater stability of the group's international operations,” the agency said in a press release.

The RWN considers the risks around refinancing of debt due in April 2023, including the group's ability and intention to use its financial investments as a repayment source, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.