Research Update: Turkish Power Generator Aydem Renewables Outlook Revised To Stable After Similar Sovereign Action; Affirmed At 'B'

On Sept. 29, 2023, we revised our outlook on Turkiye to stable from negative on the reimposition of orthodox monetary policy settings, affirmed the unsolicited 'B' global scale and trA/-/trA-1 national scale ratings, and maintained our transfer and convertibility (T&C) assessment at 'B'. Aydem Renewables is fully exposed the local economic, banking, and regulatory risks as a small renewables electricity generator with 100% of domestic sales in Turkiye. The recent rating action on Turkiye means that we see the exposure to these risks reduced in the near term and we therefore revised the outlook on Aydem Renewables to stable from negative and affirmed our 'B' ratings on the company and its debt. The stable outlook reflects our view of receding

...- On Sept. 29, 2023, we revised our outlook on Turkiye to stable from negative on the reimposition of orthodox monetary policy settings, affirmed the unsolicited 'B' global scale and trA/-/trA-1 national scale ratings, and maintained our transfer and convertibility (T&C) assessment at 'B'. - Aydem Renewables is fully exposed the local economic, banking, and regulatory risks as a small renewables electricity generator with 100% of domestic sales in Turkiye. - The recent rating action on Turkiye means that we see the exposure to these risks reduced in the near term and we therefore revised the outlook on Aydem Renewables to stable from negative and affirmed our 'B' ratings on the company and its debt. - The stable outlook reflects our view of receding risks for Aydem Renewables associated with the high inflation rate in Turkiye and weakened local currency affecting the company's sizable U.S. dollar-denominated debt as a result of the recent reimposition of orthodox monetary policy settings....

Research Update