Fitch: Turkcell on watch positive

Fitch Ratings said it placed Turkcell's senior unsecured local currency rating BB- on Rating Watch Positive following TeliaSonera's (A-/stable outlook) agreement to acquire from Cukurova Group an effective 27% stake in Turkcell for $3.1 billion in cash.

At the same time, Fitch affirmed Turkcell's senior unsecured foreign currency rating at BB-, which is capped by Turkey's BB- country ceiling. The outlook is stable.

The agency has also affirmed Cellco Finance NV's, Turkcell's guaranteed special purpose financing vehicle, $400 million senior unsecured notes due 2005 at BB-.

Following the acquisition, TeliaSonera's effective shareholding would increase to 64.3%, making it the controlling shareholder of Turkcell.

"The highly-rated TeliaSonera would provide stability to Turkcell's ownership, and remove the uncertainty associated with the financially troubled Cukurova Group," said Fitch's Guzin Durmus.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.