Fitch rates Profilo Telra note B

Fitch Ratings said it assigned a final B foreign-currency senior unsecured rating with a recovery rating of RR4 to the €50 million 10¾% loan participation notes due 2011 issued by HD Capital SA, the debt-issuing vehicle of Turkey-based Profilo Telra Elektronik Sanayi ve Ticaret AS.

Proceeds from the notes will finance a loan to Profilo Telra. Proceeds from the loan will be used by Profilo Telra to fund working capital requirements, to refinance existing debt and for general corporate purposes. The notes constitute direct, unsecured and unconditional obligations of Profilo Telra and rank equally with all other present or future unsecured and unsubordinated obligations of Profilo Telra.

The terms and conditions of the loan agreement include a limitation on Profilo's debt, using a maximum leverage ratio of 4x and consolidated fixed charge coverage ratio of 2.25x. However, Fitch noted that the final terms and conditions of the notes include an additional investor protection covenant in the form of a put option whereby HD Capital will redeem the notes at par plus accrued interest by Dec. 7, 2009.

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