Fitch rates Calik B+

Fitch Ratings said it assigned B+ local- and foreign-currency issuer default ratings to Calik Holding AS and affirmed the company's BBB+(tur) national long-term rating.

The outlook is positive.

The B+ ratings are based on Fitch's assessment that the company has achieved diversification of revenue and operating profit generation, particularly with Calik Enerji AS, in its consolidated results.

The ratings also take into consideration the potentially significant increase in capital expenditure and leverage that Calik's planned expansion in the electricity generation, oil and gas and telecommunication sectors may generate. The agency said that while these ventures have the potential to elevate the group's profitability and cash generation capabilities, the funding structure and eventual monetary impact of such expenditures on group results are yet to be seen.

However, Fitch said it does not expect Calik to leverage itself beyond a consolidated net debt-to-EBITDA ratio of 4x at the current rating level.

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