S&P: Eregli Demir on developing watch

Standard & Poor's said it placed its BB- long-term foreign and local currency corporate credit ratings on Eregli Demir ve Celik Fabrikalari TAS (Erdemir) on CreditWatch with developing implications.

The CreditWatch placement reflects the uncertainty concerning the future operational strategy and financial policy of Erdemir pending the sale of the Turkish government's 49% stake in the company, S&P said, noting there remains the question of whether the company might be controlled by an entity with a stronger or weaker credit profile than Erdemir currently has itself.

These uncertainties have been heightened by 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, the agency noted.

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