S&P lowers Turk Hava Yollari

S&P said it lowered the long-term corporate credit rating on Turk Hava Yollari Anonim Ortakligi to BB- from BB.

The outlook is negative.

The agency also said it lowered the ratings on the company’s aircraft-backed enhanced-equipment trust certificates to BBB.

The downgrades reflect the company’s significantly weaker-than-anticipated performance since early 2016 and an expectation that the company will not fully recover to deliver financial metrics in line with the prior rating, S&P said.

The company has been operating under a challenging environment facing low levels of traffic to and from Turkey, mainly due to security concerns and weak tourism activity, the agency explained.

Demand still lags its strong planned capacity increase for the full year, resulting in continuing load factor decline and revenue pressure, S&P said.

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