The ratings on Turkcell Iletisim Hizmetleri A.S., the leading Turkish mobile telecommunications company, reflect the company's still high exposure to foreign currency-denominated debt and to the volatile macroeconomic environment in Turkey. These weaknesses are mitigated by Turkcell's good business position, solid operating performance, and adequate liquidity. Turkcell had total reported debt of $630.2 million at Dec. 31, 2003, down from $1.3 billion at Dec. 31, 2002. Legal risk is high for Turkcell, as it is party to a number of material legal actions involving the tax authorities; the Turkish telecoms regulator; and Türk Telekomünikasyon A.S. (Turk Telecom), the fixed-line incumbent, among others. Other credit risks could arise from the company's aggressive international expansion, as reflected by Turkcell's recent entry in
