| Abstract: | The ratings on Turkey-based brown and white goods manufacturer Vestel Elektronik Sanayi Ve Ticaret A.S. reflect what Standard&Poor's Ratings Services sees as Vestel's high reliance on short-term funding; high leverage and looming debt maturities; and volatile operating performance, partly reflecting uneven macroeconomic conditions in Turkey and foreign exchange rate volatility. The ratings also reflect what we consider weak and volatile cash generation, stemming from, among other things, working capital swings. These weaknesses are only partially mitigated, in our view, by demonstrated shareholder support, the group's cost-efficient manufacturing, a reducing debt burden, and its rising market share in the EU TV market, after a challenging transition to flat-screen liquid crystal display (LCD) TVs. In our base-case assessment, we assume
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