S&P lifts Vestel outlook to positive

Standard & Poor's said it revised to positive from negative its outlook on Vestel Elektronik Sanayi Ve Ticaret AS, reflecting its expectations of improving cash flow generation and positive shareholding developments at Vestel.

At the same time, the B+ long-term corporate credit rating was affirmed, the agency said.

Vestel's cash flow generation, which is currently modest, is expected to improve in 2007, as revenues and EBITDA from the white-goods division, about 20% and 30%, respectively, of group totals in first-half 2006, continue to rise, on the back of recently increased production capacity, the agency said.

During fourth-quarter 2006 Vestel's shareholder Zorlu Holding, a holding company controlled by Vestel's chairman Ahmet Zorlu, sold a majority stake in Denizbank for $2.4 billion and announced its intention to use part of the proceeds to purchase the 51.6% of Vestel's equity owned by Collar Holding, the agency added/

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