S&P: Vestel view to stable

Standard & Poor's said it revised to stable from negative its outlook on Vestel Elektronik Sanayi Ve Ticaret AS and affirmed its long-term corporate credit rating at B-. The agency also said it affirmed Vestel Electronics Finance Ltd.'s $225 million notes due May 2012 at B-. Its recovery rating of 4 remains unchanged.

The outlook revision reflects a belief that Vestel's covenant headroom remains adequate versus the tight year-end 2008 level, S&P said.

These improvements reflect the demonstrated support from Vestel's main shareholder and its recently improved profitability, the agency said.

The ratings remain constrained by what the agency said it sees as Vestel's high reliance on various forms of short-term funding, high leverage and a volatile operating performance, S&P said.

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