Page 83 - TURKRptAug20

At the time of the withdrawal, the outlook was negative.
On April 17, Standard & Poor’s said that it had upgraded Vestel Elektronik to CCC-/Negative, default imminent with little prospect for recovery, after downgrading the company to Selective Default earlier in the month.
Vestel had shifted a significant portion of debt maturing in 2Q20 to Q3, which S&P thought had slightly improved its debt maturity profile.
The transaction would have eased liquidity pressure in Q2, but S&P foresaw insufficient current liquidity to avoid a default in Q3 because of the significant amount of debt maturing and its expectation of cash burn caused by coronavirus (COVID-19) disruptions.
The negative outlook reflected S&P’s view that Vestel could default in the next six months.
Vestel Elektronik and white goods maker Vestel Beyaz halted production from March 20 to April 5 due to the COVID-19 pandemic.
As of April 6, the numbers of staff working in each shift was reduced and the capacities of the plants were lowered.
In March, Vestel Elektronik sold its TV assembly plant in Poland to South Korea’s LG Chem for $31.4mn.
The facility was divested as part of a cost optimisation plan, Vestel Elektronik said in a filing with Borsa Istanbul.
In Turkey, Vestel is the market leader in televisions and one of the top three players in household appliances. As a global producer, Vestel also ranks among the top three producers of televisions and the top five white goods manufacturers in Europe.
Vestel is owned by Erdoganist businessman Ahmet Nazif Zorlu.
Fitch Ratings has affirmed Turkey’s leading glassmaking group Sisecam’s (SISE) long-term Issuer Default Rating (IDR) at 'BB- '​, three notches below the investment grade, according to a ​statement​ by the rating agency. The outlook is Stable.
Fitch does not expect the ratings to be upgraded while they are constrained by Turkey's Country Ceiling (BB-/Stable).
83​ TURKEY Country Report​ August 2020 ​ ​www.intellinews.com