Fitch lowers Lider Faktoring

Fitch Ratings said it downgraded Lider Faktoring AS' national long-term rating to BBB(tur) from A-(tur).

The outlook is negative.

“The downgrade reflects deterioration in the operating environment in Turkey, which together with Lider's own performance, drives the rating,” the agency said in a news release.

“We view the volatile economic environment in Turkey as exerting a negative impact on Lider through its core clientele of SMEs and in respect of its funding access from local banks.

“Lider was operating with a high debt-to-tangible equity of 9.2x at end-2017, up from 9.0x at end-2016. The company's profitability has improved in the past two years, but a high dividend payout ratio has weakened internal capital generation.”

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