Moody’s cuts Turkish Airlines, reviews eight corporates

Moody's Investors Service said it placed on review for downgrade the ratings of the following eight Turkish corporates: Anadolu Efes Biracilik ve Malt Sanayii AS, Coca-Cola Icecek AS, Dogus Holding AS, Koc Holding AS, Ordu Yardimlasma Kurumu, Turkcell Iletisim Hizmetleri AS, Turkiye Petrol Rafinerileri AS and Turkiye Sise ve Cam Fabrikalari AS.

At the same time, the agency downgraded Turkey's national airline Turk Hava Yollari Anonim Ortakligi’s (Turkish Airlines) corporate family rating to Ba2 from Ba1 and probability of default rating to Ba2-PD from Ba1-PD.

Moody's also downgraded Turkish Airlines' enhanced equipment trust certificates (EETCs) to A3 from A2 (Bosphorus Pass Through Trust 2015-1A), to A3 from A2 (Anatolia Pass Through Trust 2015-1: class A) and to Baa3 from Baa2 (Anatolia Pass Through Trust 2015-1: class B). The outlook on the corporate and EETC ratings of Turkish Airlines is negative.

The actions on the other eight corporates follow the initiation of Moody's review for downgrade of Turkey's Baa3 government bond rating, which was in turn driven by the need to assess the impact of the failed military coup on the country's economic growth, policymaking institutions and external buffers, given the existing challenges in all of these areas.

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