Fitch rates Oyak

Fitch Ratings said it assigned a long-term issuer default rating of BB+ to Ordu Yardimlasma Kurumu (Oyak).

The outlook is stable.

The rating reflects Oyak's blended income stream, which is as assess as lower than investment-grade, Fitch said.

The ratings are constrained by Oyak's limited diversification away from the Turkish economy and dependency on the company's largest dividend contributor Erdemir, the agency said.

The ratings are higher than the BB+ Turkish country ceiling, reflecting expectations that Oyak has sufficient structural enhancements that would mitigate transfer and convertibility risks, Fitch said.

The stable outlook reflects an expectation that Oyak will maintain a strong balance sheet at the holding company level, the agency said.

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