Fitch cuts Global Yatirim to CCC, bonds to CCC-

Fitch Ratings said it downgraded Global Yatirim Holding AS' long-term foreign- and local-currency issuer default ratings to CCC from B-/stable.

Global Yatirim's $40 million unsecured bond maturing in 2017 was downgraded to CCC-/RR5 from B-/RR4. The net outstanding amount owed by the group from the $40 million bonds is $15 million as $25 million of the bonds are held by Global Yatirim and its subsidiaries.

Fitch said the downgrade reflects an increase of Global Yatirim debt and current minimal free cash flow generation at its businesses, except for the Global Ports business.

In addition, the Global Ports business increased debt in 2013, which may reduce its ability to pay sustainable dividends to the holding company given its higher debt service obligations and the debt service coverage ratio covenant in its debt documentation, the agency said.

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