Fitch: Negative watch continues for Dogan Yayin

Fitch Ratings said it will maintain the Rating Watch negative on Dogan Yayin Holding's long-term foreign- and local-currency issuer default ratings of B.

The negative watch reflects the ongoing court process on the significant tax fines, which have been levied on the company since 2008, Fitch said.

If the tax fines are resolved in the short term, the agency said that could result in positive rating action given that there are currently adequate financial resources at the Dogan Holding level to service these obligations.

The ratings could come under further pressure if tax fines are levied and any supporting cash from the company fails to materialize, Fitch said, or if the group is unable to reduce consolidated leverage as a result.

The ratings also reflect the company's high consolidated leverage and related liquidity risk resulting from a string of acquisitions from 2005 to 2007, the agency said.

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