S&P upgrades Ulker Biskuvi

S&P said it raised its ratings for Ulker Biskuvi Sanayi AS and its notes to B from B- and them from negative watch where they were placed on Sept. 15.

Ulker monetized its short-term financial investments portfolio, and now holds about $560 million of U.S. dollar-equivalent liquid cash deposits at current exchange rates, a much higher level than previously.

“We understand that the group is progressing well in its negotiations with banks to obtain new long-term hard currency credit lines which, together with its large cash balances and deposits, will enable it to refinance its sizable bank debt maturities due April 2023. These amounted to about $450 million at current exchange rates or about 46% of total debt as of Sept. 30, 2022,” S&P said in a press release.

Additionally, the agency said it now estimates Ulker will deliver free cash flow of TRY 500 million in 2023 and S&P Global Ratings-adjusted (gross) debt leverage at 4x-5x.

The outlook is stable.

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