S&P updates Turkish Turkcell's outlook to 'positive'

Credit rating agency Standard&Poors updated the credit outlook of Turkcell from "stable" to "positive".

S&P updates Turkish Turkcell's outlook to 'positive'

Credit rating agency Standard&Poors (S&P) updated the credit outlook of Turkish mobile telecom operator-Turkcell from "stable" to "positive".

S&P said today that it has revised to positive from stable its outlook on the 'BB+' long-term corporate credit rating on Turkcell Iletisim Hizmetleri A.S.

S&P said it also affirmed the 'BB+' long-term corporate credit rating on Turkcell.

Turkcell's improved consolidated EBITDA margins from 34.4% in Q3-2009, to 37.1% in Q3-2010, the stabilization of the Turkish mobile market and the falling interconnection costs, the substantial rise in profits of Turkcell's domestic fixed broadband and Ukrainian mobile subsidiaries, has been effective in S&P's decision to update Turkcell's credit outlook.

"In the first nine months of 2010, Turkcell generated free operating cash flow after interest and gross tangible and intangible capital spending of $267 million, according to our calculations, compared with negative $318 million in the first nine months of 2009. Finally, Turkcell has maintained modest gross leverage and large cash balances. This in our opinion adequately mitigates the currency mismatches between the company's dollar-denominated debt and its mostly Turkish Lira cash flows," said S&P

The positive outlook reflects the potential for an upgrade over the next 12 to 24 months," said S&P's credit analyst Patrice Cochelin.


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Last Mod: 27 Ocak 2011, 14:21
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