TODAY’S – SandP assigns THY negative outlook rating

SandP assigns THY negative outlook ratingCredit rating agency SP has assigned a negative rating to Turkish Airlines (THY) as it believes the company may soon require financial assistance from the government, according to a report the agency released on Friday.A long-term corporate rating of andldquoBB+andrdquo was assigned to Turkeyand#39s flagship airline, indicating a negative outlook.

andldquoThe business risk is partly constrained by the volatility of the airline industry, THYand#39s exposure to currency movements and potential emerging competitive challenges,andrdquo said the report. andldquoThe rating on THY also reflects our view that the Turkish government has a moderately high likelihood of offering extraordinary support to THY because of the strong link between THY and the government, as well as the airlineand#39s important role in the Turkish economy,andrdquo it continued.

THY, which is 49 percent state-owned, nevertheless posted a 166.5 percent rise in net profits last year compared to 2013, according to an announcement from the company last month.

It announced on Monday that it intends to purchase four A330-200F planes from the European aircraft manufacturer Airbus.

SOURCE: Today’s Zaman