Fitch provides BB+ to Arcelik notes

Fitch Ratings said it assigned Arcelik AS' prospective notes of up to €500 million an expected rating of BB+(EXP).

The expected rating is in line with Arcelik's issuer default rating and senior unsecured rating of BB+, as the notes will be direct, unconditional, unsubordinated and unsecured obligations of Arcelik and rank parri passu with all other outstanding unsecured and unsubordinated obligations of the company.

Proceeds are expected to be used to refinance existing short-term debt and for general corporate purposes.

The bonds include a negative pledge provision binding Arcelik, as well as financial reporting obligations, restrictions on certain corporate reorganizations, cross-acceleration and certain events related to bankruptcy and insolvency of the company or any other principal subsidiary, and a covenant limiting transactions with affiliates that do not comply with an arms-length principle, Fitch said.

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