The ratings on Turkcell Iletisim Hizmetleri A.S. (Turkcell)--the leading GSM (global system for mobile communications) operator in Turkey--primarily reflect the company's very limited short-term financial flexibility, as well as its high exposure to foreign currency denominated debt and to the macroeconomic environment in Turkey. These weaknesses are mitigated by Turkcell's dominant position in the dynamic Turkish cellular telephony market and its sound operating performance. Turkcell has limited the impact of the severe economic crisis that hit Turkey in 2001--including a 126% devaluation of the Turkish lira against the U.S. dollar--through sharp tariff increases and cost cutting. While revenues decreased to $1.4 billion in the first nine months of 2001 from $1.6 billion in the same period the year before, the
