Fitch rates Arcelik notes BB+

Fitch Ratings said it assigned a foreign-currency senior unsecured rating of BB+ to Arcelik AS, along with an expected rating of BB+ to its prospective five- to 10-year unsecured notes of up to $1 billion.

The expected rating for the prospective bond is in line with the company's issuer default rating of BB+.

The outlook is stable.

The notes are expected to be used to refinance existing short-term debt and for general corporate purposes, Fitch said.

The notes will be direct, unconditional, unsubordinated and unsecured obligations of Arcelik AS and rank pari passu with all other outstanding unsecured and unsubordinated obligations of the company, the agency said.

Arcelik's 2012 financial results were broadly stable and within expectations, Fitch said.

The company's strong revenue growth, driven by market-share gains, was tempered by flat profitability margins as a result of cost pressures, especially from raw materials, the agency said.

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