Fitch: Arcelik view negative

Fitch Ratings said it changed the outlook for Arcelik AS's long-term local-currency issuer default rating and national long-term rating to negative from stable. Its long-term local-currency issuer default rating is affirmed at BB+ and national long-term rating at AA+(tur). The long-term foreign-currency issuer default rating is affirmed at BB with stable outlook.

The negative outlook reflects the continued deterioration in Arcelik's financial profile, the agency said.

Arcelik's 2007 results continued to be characterized by negative free cash flow due to additional working capital needs, as well as continued cash dividend payout and expansion capital expenditure in some of its business lines, Fitch said.

The issuer's net debt-to-EBITDAR ratio grew to 4.2 times at fiscal year-end 2007 from 3.1 times in 2006.

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