S&P lowers Koc to negative

S&P said it revised the outlook on Koc Holding AS to negative from stable.

The agency also said it affirmed the BBB- long-term and A-3 short-term corporate credit ratings on the company.

The outlook revision follows the recent outlook revision on the Republic of Turkey, S&P explained.

The outlook on Koc was revised because the company’s long-term rating is constrained by the outlook on the sovereign, the agency said.

S&P said it caps the rating on Koc at two notches higher than the long-term foreign-currency sovereign credit rating.

The two-notch difference is predominantly due to Koc's strong net cash position, the agency said.

Also, the majority of the company's cash holding is denominated in U.S. dollars, which is viewed as a positive factor, S&P said.

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