International credit rating agency S&P Global Ratings (Standard & Poor's Ratings Services) has announced that it has raised its long-term corporate credit rating for Turkish integrated steelmaker Erdemir Group to 'BB' from 'BB-'. The outlook is stable.
S&P stated that the upgrade reflects Erdemir Group's strong operating performance in 2015 and its improved liquidity position despite challenging market conditions. In 2015, Erdemir Group accumulated increasing cash balances that have strengthened its liquidity. According to S&P, Erdemir Group continues to benefit from the Turkish flat steel industry's supportive supply and demand balance, as well as the company's high capacity utilization rates. Meanwhile, the stable outlook reflects S&P’s expectation that Erdemir Group will maintain profitability above the industry average, generate strong free operating cash flow, and maintain adequate liquidity.