Fitch gives Global Liman notes BB-

Fitch Ratings said it assigned Global Liman Isletmeleri AS' $275 million senior unsecured notes due 2021 an expected senior unsecured rating of BB-(EXP) with a stable outlook.

The BB-(EXP) rating reflect Global Liman’s fairly weak business attributes and debt structure, even though leverage at 2.2 times at fiscal year-end 13 was lower than for most peers with higher ratings. The key weakness of Global Liman is its exposure to two volatile business segments: (a) The containerised export of marble from Port Akdeniz (near Antalya), representing 50% of total revenue; and (b) the passenger cruise business in Kusadasi representing 19% of total revenue.

Although both segments have historically demonstrated robust growth, and are highly de-correlated from each other and the general Turkish economy, Fitch said each is predominantly reliant on specific exogenous drivers (China and the construction industry for marble, foreign tourists for cruises) and exposed to some competitive pressure.

The rating is also constrained by a weak unsecured debt structure against an acquisitive corporate profile and by exposure to refinancing risk, the agency said.

© 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.