Strong position and good cash generation of Turkcell's mobile operations in Turkey. Moderate gross adjusted leverage. Significant cash balances, including large amounts matched to debt currency. Investment in an associate in well-positioned Eurasian operations. Volatile and weak economic environment in Ukraine and Belarus, and to a lesser extent, Turkey. Ongoing shareholder disputes and uncertainties in corporate governance. Currency mismatches and sizable short-term debt. Risk of further regulatory pressure. The rating on Turkey-based telecommunications provider Turkcell Iletisim Hizmetleri A.S. reflects Standard&Poor's Ratings Services view of Turkey's volatile economic environment, as well as Turkcell's international expansion and 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.
