Fitch cuts Vestel view to negative

Fitch Ratings said it changed Vestel Elektronik Sanayi ve Ticaret AS's outlook for its long-term foreign- and local-currency issuer default ratings to negative from stable. Its long-term foreign- and local-currency issuer default ratings are affirmed at BB-, along with the senior unsecured rating of Vestel Electronics Finance Ltd.'s issue of $225 million 8 ¾% notes at BB-.

The change in outlook reflects concerns about the profitability decline in Vestel's television business, which is putting pressure on Vestel's consolidated operating margins and cash flow generation capacity, Fitch said.

The company continues to face pricing and margin pressure in the conventional and flat screen televisions and electronic consumer goods segments coupled with continued capital expenditures and working capital requirements, the agency said.

© 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.