The ratings on Turkcell Iletisim Hizmetleri A.S. (Turkcell) remain on CreditWatch, where they were placed with negative implications on Feb. 21, 2001, following the placement on CreditWatch of the ratings on the Republic of Turkey. Turkcell continues to post solid business fundamentals--such as sustained customer-base and revenue growth--which should increasingly enable it to use internal funding to finance most of its capital expenditures. However, the rapid and continued deterioration of the economic and currency environment in Turkey--including the sharp depreciation of the Turkish lira--and of the credit quality of the Republic of Turkey significantly affect the overall capacity of the company to face its financial obligations (currently in excess of $2 billion). The ratings on Turkcell will continue to be
