We expect Turk Hava Yollari A.O.'s (Turkish Airlines'; THY's) financial leverage to increase, with S&P Global Ratings-adjusted funds from operations (FFO) to debt falling to 14%-15% in 2019 from 23% in 2018, due to largely debt-funded fleet expansion and soft earnings. Although the deteriorating financial risk profile remains commensurate with the 'B+' rating, we believe financial leeway under the current rating has diminished. We are therefore affirming our 'B+' long-term issuer credit rating on government-related entity (GRE) THY. The stable outlook reflects that on Turkey and our expectation that THY will increase its EBITDA in 2020 to counterbalance increasing debt to fund new planes and stabilize financial metrics. We expect Turkish Airlines' financial leverage to increase, with S&P Global Ratings-adjusted
