S&P: Eregli Demir view negative

Standard & Poor's said it revised its CreditWatch implications on the BB- long-term corporate credit rating on Eregli Demir ve Celik Fabrikalari TAS (Erdemir) to negative from developing.

"The CreditWatch revision follows the acquisition of 49% of the share capital of Erdemir by Ordu Uardimlasma Kurumu (not rated)," said S&P credit analyst Olivier Beroud.

"The revision also reflects the uncertainty concerning Erdemir's future operational strategy and its financial policy after the sale of the Turkish government's 49% stake in the company."

S&P said additional uncertainties include a lawsuit challenging the creation of a golden share that gives veto rights to the privatization administration over certain decisions and the resignation of the general manager of Erdemir as well as the general manager of its 91%-owned subsidiary, Isdemir.

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