Moody's downgraded the ratings of Turkey's energy giant Turkish Petroleum Refineries (TUPRAS) on Thursday and also agreed on a B2 negative rating, considered speculative and high credit risk for seven other non-financial corporates domiciled in Turkey.
The company noted the decision follows the weakening of the Turkish government's credit profile, as reflected by Moody's recent decision to downgrade Turkey's government bond ratings to B2 from B1, maintaining a negative outlook.
“The negative outlooks continue to reflect the negative outlook on the sovereign rating,” Moody’s Investors Service said.
However, Moody’s elaborated that TUPRAS' ratings could experience downward rating pressure if plant utilization and net refining margins remain low, leading to depressed operating cash flow in 2021.
By Sibel Morrow