Fitch lowers Yuksel Insaat

Fitch Ratings said it downgraded Yuksel Insaat AS's long-term foreign-currency issuer default rating and senior unsecured rating to CCC from B- and removed them from Rating Watch negative.

Fitch also said it downgraded the company's $200 million outstanding notes due in 2015 to CCC from B- with a recovery rating of RR4.

The downgrade reflects a continued concern about the company's tight liquidity and inability to access additional financing for its ongoing projects, Fitch said, as well as uncertainties on the company's investments and potential cash injections into projects.

The agency said it believes the company's current cash balances may not be enough to cover its working capital and financing needs in 2013.

However, an improvement in liquidity through asset disposals or additional cash injections in the short term could support the ratings, Fitch said.

The ratings continue to reflect the company's position as one of the main construction companies in Turkey, focusing on infrastructure construction contracts mostly for government entities across Turkey, 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.