International credit rating agency Moody’s has affirmed the Turkish integrated steelmaker Erdemir Group’s Ba2 corporate family credit rating, while its outlook for the company’s rating remains stable.
According to Moody’s, the affirmation of Erdemir's corporate family rating at Ba2 considers the company's continued robust operating and financial performance in 2017, leading to high margin and strong credit metrics for the rating.
The rating also reflects Erdemir's leading market position in the Turkish flat steel market where the supply-demand balance is favorable to the company. High exposure to Turkey, where Erdemir produces all its steel and sells the majority of it, is a potentially credit constraining factor, after Moody's has downgraded Turkey’s sovereign rating to Ba2 stable in the current month. However, the solid financial profile of Erdemir provides a cushion for its rating, which the credit rating agency expects to remain well positioned even under a less favorable economic scenario in the country over the next 12 to 18 months.