Fitch affirms Calik

Fitch Ratings said it affirmed Calik Holding AS' long-term foreign- and local-currency issuer default ratings at B-, its national long-term rating at BB-(tur) and Globus Capital Finance SA's $200 million 8½% notes due 2012, which are guaranteed by Calik, at senior unsecured B- with a recovery rating of RR4.

The agency also downgraded the national long-term rating of GAP Guneydogu Tekstil AS, a Calik subsidiary, to BB-(tur) from BBB+(tur).

The outlook is negative.

While GAP's performance remains stable, the downgrade reflects Fitch's applied parent and subsidiary linkage rating methodology and highlights the strong linkage between Calik and GAP, which it said justifies equating the national long-term rating of both entities.

The agency said the negative outlook continues to reflect downside risks to Calik's operating performance in 2010 and its overall weak liquidity position, particularly in the media division.

The $200 million Globus bond, which is part of the construction subsidiary and of which Calik has to date bought back a significant amount, will mature in 2012. In view of the group's weak liquidity position, Fitch is concerned about the refinancing of the upcoming maturities and expects Calik will need to accelerate its refinancing efforts.

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