Fitch rates Turkcell Finansman BB+

Fitch Ratings said it assigned BB+ foreign- and local-currency long-term issuer default ratings and a AA(tur) national long-term rating to Turkcell Finansman AS.

The outlook on the issuer default ratings is negative while the outlook on the national rating is stable, Fitch said.

Turkcell Finansman was created as a separate entity out of the financing department of Turkcell in the fourth quarter of 2015, the agency explained.

There have been no major changes in the new company’s operations relative to those previously undertaken by Turkcell's financing department, Fitch said.

The ratings are based on potential support from the parent company as Fitch said it believes Turkcell would have a strong propensity to support Turkcell Finansman due to its 100% stake and full operational control.

The one-notch difference between the ratings of Turkcell and Turkcell Finansman reflects the subsidiary's focus on a different segment – finance rather than telecom services – and its short operating history, the agency said.

These factors moderately reduce the reputational risk for the parent or potential negative impact on other parts of Turkcell group in case of a default at Turkcell Finansman, Fitch said.

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