Fitch ups Dogus view to positive

Fitch Ratings said it revised the outlook to positive from stable on the local- and foreign-currency ratings for Dogus Holding AS and affirmed the ratings at BB-.

The revision is based on Fitch's assessment of the company's plans to invest its increased liquidity in projects yielding potentially higher returns and cash flows than the current levels of interest income on the liquidity held by the holding company.

On a consolidated level, excluding financial services subsidiaries, Dogus Holding had just over $800 million net cash at end of fiscal year 2005 compared to just under $900 million net debt at the end of fiscal year 2004. Fitch said it expects Dogus to have about $600 million net cash at end of this year, again excluding financial services from the consolidated holding results.

Fitch noted the improvements in the business and financial profiles of the operating subsidiaries of Dogus during 2005 and so far in 2006, especially in Turkiye Garanti Bankasi AS with respect to its potential dividend contributions to Dogus cash flows in the future.

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