S&P rates OYAK credit BB-

Standard & Poor's said it assigned its BB-/B long- and short-term corporate credit ratings to OYAK (Ordu Yardimlasma Kurumu), one of the largest industrial and financial conglomerates in the Republic of Turkey (BB-/stable/B)

The outlook is stable.

The ratings reflect the group's heavy exposure to the Turkish economy and associated country risks, as well as the expectation that debt leverage and financial commitments could materially increase following the group's successful $2.8 billion bid for a 49% stake in Eregli Demir ve Celik Fabrikalari (BB-/negative watch).

These weaknesses are mitigated by OYAK's large and diverse portfolio of equity holdings - which span power, cement manufacturing, auto manufacturing and distribution and financial services - and by OYAK's successful profitability track record and the solid liquidity of its supplementary pension fund, the agency said.

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