Turk Hava Yollari A.O.'s (THY's) performance was weaker than we expected in the first quarter of 2016, with EBITDA falling by almost 50% year on year. In our view, the terror attacks at Istanbul airport last month and the resulting potential adverse effect on traffic have significantly dented the recovery prospects of Turkish airlines. We anticipate that this will contribute to further deterioration in THY's credit measures in 2016 and are therefore lowering our corporate credit rating on THY to 'BB-' from 'BB'. The negative outlook reflects uncertainty around the geopolitical environment in Turkey and the heavy investment that the airline is undertaking for fleet expansion during this uncertainty. On July 14, 2016, S&P Global Ratings lowered its long-term corporate
