Fitch Ratings has downgraded Limak Iskenderun Uluslararasi Liman Isletmeciligi’s (LimakPort) USD370 million senior secured notes and Mersin Uluslararasi Liman Isletmeciligi’s USD600 million senior unsecured notes to ‘B+’ from ‘BB-‘. The Outlook is Negative.

RATING RATIONALE
The rating action follows the recent downgrade of Turkey’s sovereign Long-Term Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘ (see ‘Fitch Downgrades Turkey to ‘B+’; Outlook Negative’ dated on the 11 February 2022 at www.fitchratings.com). Turkey’s sovereign IDR caps the ratings of both LimakPort and Mersin due to their linkages to the country’s economic and regulatory environment.

RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
LimakPort:

A downgrade of Turkey’s sovereign rating.

Mersin:

A significantly unfavourable revision of the current capital structure linked to its debt-funded financial policy.

A downgrade of Turkey’s sovereign rating.

Factors that could, individually or collectively, lead to positive rating action/upgrade:
LimakPort:

Positive action on Turkey’s sovereign rating.

Mersin:

Positive action on Turkey’s sovereign rating.

BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from ‘AAA’ to ‘D’. Best- and worst-case scenario credit ratings are based on historical performance.
Source: Fitch Ratings