“Currency mismatches and reliance on short-term borrowings exacerbate the pressure on the Turkish corporate ratings stemming from the recent lira depreciation and a deteriorated operating environment,” the global rating agency, Fitch Ratings said in a report published this Tuesday.
Key quotes
“¢ Fitch continues to monitor the companies’ credit ratings and the corporates’ ability to pass on high costs due to currency mismatch to their customers.
“¢ Liquidity profiles for corporates become increasingly significant if volatile conditions persist over time.
“¢ Availability of bank credit lines may become more restricted if the impact of currency crisis intensifies on Turkish banks.
“¢ Relatively short-term maturity profiles of corporate debt could increase pressure on the ratings.
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