International credit rating agency S&P Global Ratings has announced that it has revised its outlook on Turkey’s largest integrated steelmaker Erdemir Group to negative from stable and affirmed its 'BB' long-term corporate credit rating.
S&P stated that the affirmation and outlook revision follow its downgrade of Turkey and, while it does not see imminent negative implications for Erdemir, the negative outlook reflects the possibility of a downgrade over the next 12-18 months if Erdemir's business is hindered by Turkey's political turmoil.
On July 20, S&P lowered its foreign and local currency sovereign credit ratings for Turkey to 'BB' and 'BB+', respectively, from 'BB+' and 'BBB-', which reflects its view that following the attempted coup on July 15 Turkey's political landscape has fragmented further and S&P believes this will undermine Turkey's investment environment, growth, and capital inflows into its externally leveraged economy.