The ratings on Turkey-based telecommunications provider Turkcell Illetisim Hizmetleri A.S. reflect Standard&Poor's Ratings Services view of Turkey's volatile economic environment, as well as Turkcell's international expansion and significant cash consumption in Ukraine and Belarus, currency mismatches, high short-term debt, continuing legal disputes among the group's major shareholders, and considerable regulatory pressures. Supportive factors include the company's strong position and performance in the Turkish mobile telecom market, good mobile cash flow generation, moderate gross leverage, sizable liquid assets, and its investment in an associate in Eurasia. Turkcell's revenues in the first quarter of 2011 declined 5.8% year over year. This primarily reflected the intensifying competition in the market as well as a 52% reduction of mobile termination rates--the fees
