S&P might cut Turk Hava Yollari

S&P said it placed its BB- long-term issuer credit rating on Turk Hava Yollari AO on CreditWatch with negative implications.

The agency also placed the BBB- issue ratings on its aircraft-backed enhanced-equipment trust certificates on CreditWatch negative.

S&P said the CreditWatch placement follows the lowering of the unsolicited long-term local currency rating on Turkey to BB from BB+ and the long-term foreign currency rating to BB- from BB.

“We believe that Turkey is facing what we view as increasing macroeconomic imbalances reflected by, among other things, high inflation, a deteriorating current account deficit and a depreciating local currency,” the agency said in a news release.

“We view THY as a government-related entity and therefore link our rating on THY to the rating on the sovereign.”

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