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increased its net income to $68mn in H1 from $54mn a year ago.
In June, Moody’s downgraded MIP to B1/Negative from Ba2 following a sovereign downgrade.
“As of end-December 2018, MIP's cash on balance sheet amounted to some $93.4mn, of which only $1.4mn was held in Turkish placements. This reflects MIP's policy to hold a limited amount of cash within the local banking system to cover day-to-day costs of operations and to convert revenues received in Turkish lira into USD on a regular basis,” said Moody's. The rating agency also noted that, in addition, MIP held a $270mn receivable against its shareholders.
Notwithstanding a strong operational performance, MIP's expected cash flow generation combined with available foreign currency deposits will not be sufficient to fully cover its $450mn bond, which is due in August 2020. While this exposes MIP to a refinancing risk in more volatile financial markets, Moody's has positively factored in as mitigating factors the company's strong free cash flow generation combined with the presence of a strong shareholder—PSA International Pte Ltd (Aa1 stable), which owns 51% of the company's shares, and has provided operational support to MIP under its ownership.
In July, Fitch downgraded MIP’s $450mn senior unsecured debt rating to BB-/Negative from BB+ following the sovereign downgrade.
56​ TURKEY Country Report​ November 2019 ​ ​www.intellinews.com