Fitch cuts Yasar to B

Fitch Ratings said it downgraded Yasar Holding AS's long-term foreign- and local-currency issuer default ratings to B from B+ and national long-term rating to BBB-(minus)(tur) from A-(minus)(tur). Fitch also said it downgraded financing subsidiary Troy Capital SA's €200 million foreign-currency long-term unsecured notes to B with recovery rating of 4 from B+ with recovery rating of 4. These notes benefit from upstream guarantees from seven of Yasar's subsidiaries, including five of its six Istanbul-listed subsidiaries. As such, the notes rank equally with unsecured debt at the group's subsidiaries.

The outlook remains negative.

The downgrade reflects Yasar's uneven operating performance and an expectation for a more challenging economic environment in Turkey over the near term, Fitch said.

The agency said it believes it will be difficult to reverse these trends over the next year, though declining commodity costs will provide some relief as 2009 progresses.

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