S&P trims Ulker Biskuvi

S&P said it cut Ulker Biskuvi and its senior unsecured notes to B- from B and placed them on CreditWatch with negative implications.

“The rating action reflects the very large bank debt maturities due April 2023, as well as the narrowing refinancing opportunities amid the difficult market conditions that lead us to assess liquidity profile as weak,” the agency said in a press release.

“That said, Ulker has maintained good relationships with its main lenders and remains a high-profile and profitable subsidiary of large influential conglomerate in Turkey. While it held constructive preliminary talks with existing bank lenders over the summer, we understand Ulker has not yet secured lender commitments. Its focus has been on amending existing debt documentation to regain headroom under current maintenance financial covenants. We understand the company received unanimous and quick support from lenders on the financial covenant amendment process of the bank debt documentation,” the agency said.

S&P warned it could downgrade Ulker within the next three months unless it makes progress with the refinancing of its large bank debt.

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