Moody's downgrades 11 Turkey companies

Moody's Investors Service said it downgraded the ratings on 11 non-financial corporations domiciled in Turkey.

These actions follow the recent downgrade of the government of Turkey's long-term issuer rating to B1 from Ba3 with a negative outlook.

The companies downgraded to B1 with negative outlook include Anadolu Efes Biracilik ve Malt Sanayii AS (Efes), Coca-Cola Icecek AS (CCI), Dogan Sirketler Grubu Holding AS, Koc Holding AS, Ordu Yardimlasma Kurumu (OYAK), Turk Hava Yollari Anonim Ortakligi (Turkish Airlines), Turkiye Petrol Rafinerileri AS (Tupras).

Moody's also said it downgraded the ratings on four Turkish companies to B1 and placed the ratings on review for further downgrade. Those companies include Eregli Demir ve Celik Fabrikalari TAS (Erdemir), Ronesans Gayrimenkul Yatirim AS, Turkcell Iletisim Hizmetleri AS and Turkiye Sise ve Cam Fabrikalari AS (Sisecam).

The agency also said the B1 ratings on Petkim Petrokimya Holding AS (Petkim) were placed on review for downgrade.

Most rated companies in Turkey continue to have prudent financial policies, healthy balance sheets and strong business profiles that include foreign-currency revenues, Moody's said.

The credit fundamentals suggest a higher rating level, but the ratings are constrained by the foreign-currency bond ceiling in Turkey because these companies are materially exposed to the country's political, legal, fiscal and regulatory environment, the agency said.

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