Page 73 - TURKRptNov19

9.2.7 ​Other sector corporate news
● Arcelik
Arcelik, owned by Turkey’s largest industrial group Koc Holding, has 23 production facilities in nine countries.
Its Beko brand is the largest player in the European free-standing white goods market and the second largest in home appliances brands across the continent.
Fitch Ratings in July affirmed Arcelik's Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB+', one notch below investment grade, with a Negative Outlook.
The affirmation followed the downgrade of Turkey's sovereign Long-Term IDR from 'BB' to 'BB-', three notches below investment grade, and the Country Ceiling to 'BB-' from 'BB+'.
The ratings of Arcelik are above the Turkish Country Ceiling, reflecting Fitch's expectations that Arcelik has sufficient structural enhancements that would mitigate transfer and convertibility risks. Nevertheless, the negative outlook reflected Fitch's expectation of prolonged stress on cash generation compared with Arcelik management's expectations, driven by higher financing costs, plus increased inventory and receivable collection days in the domestic market.
73​ TURKEY Country Report​ November 2019 ​ ​www.intellinews.com