Fitch rates Vestel notes BB-

Fitch Ratings said it assigned Vestel Electronics Finance Ltd.'s proposed issue of $300 million notes an expected BB- rating.

The notes are to be unconditionally and irrevocably guaranteed by Vestel Elektronik Sanayi ve Ticaret AS.

The bond proceeds will be used to refinance Vestel's short-term debt, to replace the tendered $200 million 11½% bonds due 17 May 2007 and to fund its working capital requirements.

Fitch said it views this as a positive attempt to extend Vestel's debt maturity profile and to lower its funding cost by capitalizing on the more favorable borrowing conditions compared to those at the time of the 2007 bond issue.

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