International credit rating agency Moody’s has announced that it has lowered the credit rating of Turkish integrated steelmaker Eregli Demir ve Celik Fabrikaları T.A.S. (Erdemir), a part of OYAK Mining and Metallurgy Group, to Ba3 with a negative outlook from Ba2 ratings under review, driven by the downgrade of Turkey's sovereign rating to Ba3 with a negative outlook.
Moody’s stated that Erdemir's Ba3 rating is constrained by Turkey's sovereign rating, because all of the company's core assets are located in Turkey and more than 80 percent of its revenues and cash flows are generated domestically. As a result, the company remains exposed to Turkey's deteriorating macroeconomic environment.