Moody’s Maintains Turkcell’s Investment Grade Rating
September 27 2016 - 4:06PM
Business Wire
Moody’s Investor Service has announced that it has confirmed the
ratings of Turkcell (NYSE:TKC) (BIST:TCELL) at Baa3 level, changing
the outlook to “stable” from “rating under review.” With this
ratings confirmation, Turkcell protects its investment grade rating
at Moody’s.
With this announcement, Turkcell also maintains its three
investment grade ratings from the top credit rating agencies.
In July and August, Standard and Poor’s and Fitch had also
confirmed Turkcell’s ratings at investment grade level. Turkcell
had obtained three investment grade ratings from the three
credit-rating agencies over the summer of 2015, becoming the first
Turkish company to do so.
Very strong financial and liquidity profile, solid
fundamentals of business
In its press release, Moody’s has drawn attention to Turkcell’s
"very strong financial and liquidity profile" as well as the
fundamental strengths of its business. In its rating rationale,
Moody’s highlighted
- "Turkcell’s leadership in Turkish
mobile telephony market” which the Agency “expects will strengthen
further following the award of 47% of total frequencies available
as part of the 4.5G spectrum auction"
- The "strong fundamentals of the mobile
sector in Turkey, driven by Turkey’s young population and low
smartphone penetration relative to other European peers"
- Turkcell’s "conservative financial
policies that the company continues to adhere to” with a “very low
leverage despite the 4.5G license” and a “target of a net
debt/EBITDA in the range of 1.0x-1.5x"
- Turkcell’s "ability to tap the debt
capital markets and its strong relationships with international
banks."
In its press release, Moody’s has reminded that Turkcell had
issued a 10-year $500 million bond in October 2015. The agency also
stated that “Turkcell’s liquidity profile is very strong. The
company has high cash balances of TRY3.8 billion (78% of which in
FX) and has a committed line of Euro750 million.”
Turkcell had also signed loan agreements worth 2.4 million USD
with a number of international banks in 2015. In June and July this
year, the company took a number of further measures for liquidity,
hedging its currency risk.
ABOUT TURKCELL: Turkcell is a converged telecommunication
and technology services provider, founded and headquartered in
Turkey. It serves its customers with voice, data, TV and
value-added consumer and enterprise services on mobile and fixed
networks. Turkcell launched LTE services in its home country on
April 1st, 2016, employing LTE-Advanced and 3 carrier aggregation
technologies in 81 cities. In 2G and 3G, Turkcell’s population
coverage is at 99.80% and 95.14%, respectively, as of June 2016. It
offers up to 1 Gbps fiber internet speed with its FTTH services.
Turkcell Group companies serve 66.5 million subscribers in 9
countries – Turkey, Ukraine, Belarus, Northern Cyprus, Germany,
Azerbaijan, Kazakhstan, Georgia, Moldova – as of June 30, 2016.
Turkcell Group reported a TRY3.4 billion revenue with total assets
of TRY28.6 billion as of June 30, 2016. It has been listed on the
NYSE and the BIST since July 2000, and is the only NYSE-listed
company in Turkey. Read more at www.turkcell.com.tr
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version on businesswire.com: http://www.businesswire.com/news/home/20160927006656/en/
Hande AsikTurkcell Corporate Communications – International
Mediahande.asik@turkcell.com.tr
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