S&P rates Koc notes BBB-

Standard & Poor's said it assigned local-currency and foreign-currency BBB- long-term ratings to Koc Holding AS, along with an A-3 short-term global scale corporate credit rating.

The outlook is stable.

The agency also said it assigned a BBB- rating to the proposed unsecured notes of up to $1 billion due in 2018 to 2023 to be issued by the parent company of the group, Koc.

The ratings reflect the group's satisfactory business risk profile and intermediate financial risk profile, S&P said.

The BBB- long-term rating on Koc is higher than the BB+ long-term foreign-currency rating on Turkey, but lower than the BBB transfer and convertibility assessment on the republic, S&P said.

This reflects a view that the combination of Koc's business and financial profiles would allow the group to show resilience through a sovereign default, the agency said.

This is based on the diversity of the company's holdings, including major export companies such as Arcelik, S&P said, and the low reliance of its subsidiaries on the public sector.

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