Moody's: Vestel outlook negative

Moody's Investors Service said it affirmed Vestel Elektronik Sanayi Ve Ticaret AS's B1 corporate family and probability-of-default ratings and B1 rating on the $225 million 8¾% guaranteed notes due 2012.

The outlook was changed to negative from stable.

"Moody's recognizes the continued deterioration in the company's margins, which is largely due to increasing competition, market saturation for CRT TVs, the fact that LCD TV prices are still showing a declining trend although they are starting to stabilize and negative foreign-exchange movements, which continued throughout the first half of 2007," Stefano del Zompo, Moody's analyst, said in a written statement.

Ratings could be downgraded if the company's debt-to-EBITDA ratio rises above 4 times or upgraded if leverage falls below 3 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.