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Rating Action:

Moody's takes rating action on 13 Turkish corporates following sovereign downgrade

28 Aug 2018

London, 28 August 2018 -- Moody's Investors Service, ("Moody's") has today taken rating actions on 13 non-financial corporates domiciled in Turkey. The ratings of 11 of the 13 corporates were placed on review for downgrade on 6 June 2018.

These rating actions follow Moody's recent decision to downgrade Turkey's government bond rating to Ba3 with a negative outlook from Ba2 ratings under review for downgrade. For further information on the sovereign rating action, please refer to Moody's press release published on 17 August 2018: https://www.moodys.com/research/--PR_387786

Moody's has taken rating actions on the following Turkish corporates:

• Anadolu Efes Biracilik ve Malt Sanayii A.S. (Efes)

• Coca-Cola Icecek A.S. (CCI)

• Dogus Holding A.S. (Dogus)

• Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir)

• Koc Holding A.S. (Koc Holding)

• Ordu Yardimlasma Kurumu (OYAK)

• Petkim Petrokimya Holding A.S. (Petkim)

• Ronesans Gayrimenkul Yatirim A.S. (Ronesans)

• Turkcell Iletisim Hizmetleri A.S. (Turkcell)

• Turk Hava Yollari Anonim Ortakligi (Turkish Airlines)

• Turkiye Petrol Rafinerileri A.S. (Tupras)

• Turkiye Sise ve Cam Fabrikalari A.S. (Sisecam)

• Yasar Holding A.S. (Yasar)

Twelve corporates have negative outlooks while Dogus' ratings have been left on review for downgrade.

Additionally, Moody's has taken rating actions on two enhanced equipment trust certificate (EETC) transactions related to Turkish Airlines: Bosphorus Pass Through Trust 2015-1A and the Japanese Yen denominated, Anatolia Pass Through Trust, Class A and Class B, also issued in 2015. Moody's downgraded the Class A certificates of the Bosphorus transaction to Ba1 from Baa2 ratings under review for downgrade. The Anatolia Pass Through Trust Class A certificates were downgraded to Ba1 from Baa1 ratings under review for downgrade and the Class B were confirmed at Ba1. The outlook on all the EETC ratings were changed to negative.

Full details of the rating actions for the affected corporates can be found at the end of this press release.

RATINGS RATIONALE

Today's action reflects Moody's view that the credit quality of the 13 corporates is correlated to varying degrees to that of the Government of Turkey, given the companies' high dependence on their Turkish operations for revenue and cash flow generation.

Most of these rated corporates currently have healthy balance sheets, adequate to strong liquidity positions and robust business profiles. However, their high exposure to Turkey's macroeconomic environment and domestic banking system means that their businesses are likely to be adversely impacted if the sovereign environment continues to face credit pressures. Such examples may include weakened consumer and business demand because of high inflation eroding consumer spending and/or heightened refinancing risk through funding constraints and higher borrowing costs.

EFES

The downgrade of Efes' ratings to Ba2 with a negative outlook from Ba1 ratings under review reflects the company's high dependence on its Turkish operations for revenue and cash flow generation, representing 42% of the beer group's EBITDA in the 12 months to 30 June 2018. The continued challenging environment in Turkey has led to some pressure on Efes' reported volumes and EBITDA in the first half of 2018, which respectively declined by 7.4% and 8.7%. Efes' rating remains one notch above the sovereign rating of Turkey at Ba2, reflecting its leadership position in the Turkish market, the material cash flow contribution from its improving Russian operations and the company's strong liquidity profile, supported by the substantial equity value of its 50.3% investment in CCI. The negative outlook assigned is aligned with the negative outlook on Turkey's government bond rating.

Efes has a strong liquidity profile, supported by cash and cash equivalents of TRY2.3 billion ($0.5 billion) of which 71% was held in hard currencies as of 30 June 2018 and its 50.3% equity investment in CCI (market value of $0.6 billion as of 27 August 2018). In addition, Moody's expects Efes to generate free cash flows of around TRY200 million over the next 12 months (including dividends received from CCI). Efes' beer group had TRY1.0 billion ($0.2 billion) of short-term borrowings as of 30 June 2018 and an average debt maturity of three years. 80% of the beer group's debt was denominated in US dollar and euro as of 30 June 2018.

CCI

The downgrade of CCI's ratings to Ba2 with a negative outlook from Ba1 ratings under review reflects the company's exposure to the Turkish economy, accounting for 50% of the company's sales volume in the 12 months to 30 June 2018. CCI's rating remains one notch above the sovereign rating of Turkey at Ba2, reflecting its strong market positions in Turkey, Central Asia, Iraq and Pakistan, improving financial profile, and strong liquidity profile. The negative outlook assigned is aligned with the negative outlook on Turkey's government bond rating.

CCI has a strong liquidity profile, supported by cash and cash equivalents of TRY3.7 billion ($0.8 billion) almost fully held in US dollars as of 30 June 2018. In addition, Moody's expects CCI to generate free cash flows of around TRY350 million over the next 12 months. CCI had TRY3.0 billion ($0.6 billion) of short-term borrowings as of 30 June 2018, TRY2.3 billion of which were pre-refinanced through a 7-year $500 million senior unsecured bond issuance in September 2017. 97% of the company's debt was denominated in US dollar and euro as of 30 June 2018. The company signed a $150 million 7-year cross currency swap contract in January 2018 (15% of total debt as of 30 June 2018) for interest payments at a rate of 3.8 TRY per USD, and for principal repayment at a rate of 3.8 TRY per USD -- should the spot market be within the 3.5-8.5 TRY per USD range -- and maintain some degree of hedging above 8.5 TRY per USD.

DOGUS

The downgrade of Dogus' rating to B1 was driven by (1) a weakening financial profile, in which estimated market value based leverage has increased above 40% compared to 29.7% as of 31 December 2017; (2) the high level of consolidated debt of EUR5.8 billion (TRY42.5 billion at current FX rate) which has increased from EUR3.2 billion (TRY8.1 billion) since 2013; and 3) the increased execution risk on the Group's asset disposal strategy to reduce debt and strengthen its debt capital structure to more sustainable levels. The downgrade also captures Dogus' geographical concentration of revenues, which are mainly based in Turkey and its subsidiary companies performance are therefore linked to the political, social and economic environment of the Turkish economy.

In addition to the credit linkages to Turkey, Moody's considers Dogus to have a weak liquidity profile due to diminished public stakes and reduced dividend inflows. The reduced cash balances, limited visibility on future dividend income from its current investments and high percentage of debt maturing over the next 2 years across its investment portfolio, has weakened Dogus' liquidity profile over the next 12 to 18 months. Moody's is aware that Dogus is in the process of refinancing a large portion of short-term debt which if successful will strengthen its liquidity position by reducing the Groups exposure to near-term refinancing risk.

The rating under review reflects the near-term execution risks around the Group's ability to refinance short-term debt and the Group's ability to de-leverage the businesses through asset disposals that would strengthen the debt capital structure over the next 2 years. The review period will focus on the details surrounding the refinancing of short-term debt, the ability to deliver on its de-leveraging strategy as well as to reconsider how Moody's will analytically assess the credit profile of the company going forward.

ERDEMIR

The downgrade of Erdemir's rating to Ba3 with a negative outlook from Ba2 ratings under review is driven by the downgrade of Turkey's sovereign rating to Ba3 with a negative outlook. Erdemir's Ba3 rating is constrained by Turkey's sovereign rating, because all of the company's core assets are located in Turkey and more than 80% of its revenues and cash flows are generated domestically. As a result, the company remains exposed to Turkey's deteriorating macroeconomic environment. The negative outlook on Erdemir's ratings is in line with the negative outlook on Turkey's sovereign rating, which reflects the likelihood of a further downgrade of the company's ratings if Turkey's sovereign rating were to be downgraded.

The company has a leading position in Turkey's flat steel market and has a degree of flexibility in redirecting sales to export markets if there is a decline in domestic steel demand resulting from the current macroeconomic challenges, including the potential reduction in the government's investments in infrastructure. Its foreign-currency exposure is manageable because most of the company's debt, cash and revenue is denominated in USD and euro. Erdemir has strong credit metrics, reflected by low leverage of 0.7x total debt/EBITDA and high EBIT interest coverage of 44.3x as of 30 June 2018 (all metrics are Moody's-adjusted).

The majority of Erdemir's reported debt is short term, although this is mitigated by the company's net cash position due to a large cash balance of $1.5 billion as of 30 June 2018, comfortably covering all outstanding debt, although most cash is held with Turkish banks. Moody's expects ongoing high capital spending and dividend payouts could drive free cash flow to a negative territory in 2018 and beyond, if operating cash flow does not increase.

The affirmation of Erdemir's NSR at Aa1.tr primarily reflects the company's strong financial metrics, manageable foreign currency exposure, leading position in Turkey's flat steel market and flexibility in redirecting sales to export markets if there is a decline in domestic steel demand.

KOC HOLDING and OYAK

The downgrade of Koc Holding and OYAK, two Turkish investment holding companies, to Ba2 reflect the credit linkages and high exposure to the domestic operating environment in Turkey. However, Koc Holding and OYAK have diversified investment portfolios with a number of mature, dividend generating investments as well as exposure to export revenues, which allow their ratings to be one notch above the Government of Turkey.

The negative outlooks follow the same action taken on the Ba3 sovereign rating of Turkey and reflect the credit linkages of Koc Holding and OYAK with the Turkish economy as well as their material asset exposure to the domestic operating environment.

Since the beginning of 2018, Koc Holding's listed investment values have declined by 19% as of 15 August 2018, in line with the decline of Turkey's Borsa 100 index. On the other hand OYAK's listed investments increased by 6.6% during the same period mainly due to higher share price performance from Erdemir (+12%) and Hektas (+47%). Despite these equity price movements, the market-based leverage for both companies have remained conservatively positioned given their net cash positions. Moody's calculated market-based leverage using listed values as of 15 August 2018 for Koc Holding was -5.3% and -1.8% for OYAK.

In addition, both these companies maintain strong financial flexibility and have for many years maintained net cash positions. As of 30 June 2018, Koc Holding at the holding level had $1.9 billion of cash and $1.5 billion of borrowings. Similarly, OYAK as of 31 December 2017 had about TRY7.7 billion ($2.1 billion) of cash with TRY196 million of borrowings at the holding level but had TRY5.2 billion ($1.4 billion) of net debt at various intermediate holding companies: ATAER (iron & steel, chemical and automotive investments), OYAK Cimento (cement investments) and BIREN (energy investments).

Both Koc Holding and OYAK have excellent liquidity profiles given their strong net cash position, mature investment portfolio that provide stable dividend income and low refinancing risk over the next three years. Koc Holding's next debt matures in April 2020 ($750 million Euro bond), while OYAK has limited debt at the holding level of TRY196 million which is comprised of short-term overdraft borrowings and various amortising debt maturities at various intermediate holding companies.

PETKIM

The affirmation of Petkim's B1 rating and change of outlook to negative from stable reflects the increased liquidity risks that Petkim could face in the current environment, particularly should access to the financial markets become more constrained for Turkish corporates. In the backdrop of healthy global demand for petrochemical products, Petkim's financial performance remains within expectations of a B1 rating with Moody's-adjusted EBITDA margin of 21.5% and adjusted gross debt/EBITDA of 3.8x as of 30 June 2018 (LTM). Petkim has a degree of natural hedge against foreign currency risk, with its costs primarily in US dollar while its revenues are either in US dollar, euro or lira indexed to US dollar. The STAR refinery is also on track to be fully operational by mid-2019 following which Petkim will benefit from meaningful cost savings related to feedstock purchases.

In the interim however, Moody's anticipates that Petkim's liquidity will weaken by early 2019. Petkim's short-term debt has increased to TRY2.5 billion ($544 million) from TRY1.6 billion ($423 million) as of 2017YE as a result of lira depreciation and increase in letters of credit used for purchasing naphtha feedstock. While cash balances are currently considerable at TRY3.4 billion ($744 million), these will reduce because of upcoming committed payments for the 18% stake in the STAR refinery - specifically the $160 million second instalment in Q3 2018, and $240 million third and final instalment in the beginning of 2019.

Free cash flow over the next 12 months in Moody's view will also be low because (1) Petkim has a one month maintenance turnaround scheduled in late 2018/early 2019 which will reduce operating cash flows; (2) capex is anticipated to be about $90-$100 million including $30 million for the every four year turnaround; (3) higher crude oil prices in H1 2018 has led to a moderate compression in profitability margins which is expected to remain going forward; and (4) Moody's anticipates that most of the excess cash flows will be paid as dividends though lower than in previous years.

The B1 rating incorporates Moody's view that Petkim is a strategic investment for the State Oil Company of the Azerbaijan Republic (SOCAR, Ba2 stable) and that SOCAR will help to support Petkim's liquidity position if required.

RONESANS

The downgrade to Ba3 with a negative outlook from Ba2 ratings under review reflects Ronesans' exposure to Turkey, as evidenced by its 100% property portfolio and operational concentration in Turkey. As such, Ronesans' performance is impacted by the political, social and economic environment in Turkey and thus constrained by the Government of Turkey's credit profile.

The negative outlook is in line with that on the Ba3 sovereign rating of Turkey and reflects the credit linkages of the company with the Turkish economy and its 100% exposure to the domestic operating environment.

While Ronesans' rental agreements are linked to the euro/lira exchange rate, Ronesans' rental income is indirectly exposed to currency risks stemming from the mismatch between euro-linked leases and tenants' local currency revenue. The risk of a sudden depreciation of the lira, such as being currently experienced, is to some extent mitigated by reasonable rent levels relative to tenant turnover, as demonstrated by moderate occupancy cost ratios (OCRs = (rents plus costs)/tenant sales) of 12%-13%. Moody's however expects the weakening lira against the euro (38% since January 2018), will increase the average OCR towards 15% and will require support from Ronesans in the form of short-term rental concessions, notably to its smaller tenants which are likely to experience more challenging trading conditions.

Ronesans' liquidity profile is good underpinned by (1) cash balances of EUR90 million as of 30 June 2018; (2) limited near-term debt maturities with the next material debt maturity in 2021 and (3) our expectation of growing operating cash flows over the next 12 months due to new mall contributions, despite some operating cash flow weakness expected during the second half of 2018.

TURKCELL

The downgrade of Turkcell's rating to Ba2 with a negative outlook from Ba1 ratings under review reflects its high operational exposure for revenues and cash flows from the Turkish economy. Turkcell's Ba2 is rated one notch above Turkey's bond rating given the company's strong financial profile and market leadership position. Turkcell also has significant cash balances of TRY7.1 billion (78% in dollars and euros) with the majority deposited in the domestic banking system. While Turkcell has international operations that contribute to cash flow generation, the majority of these international operations are in countries rated below the sovereign bond rating of Turkey.

The negative outlook is in line with that on the Ba3 sovereign rating of Turkey and reflects the credit linkages of the company with the Turkish economy and its material exposure to the domestic operating environment (96% of Group EBITDA as of 2017) with the balance of cash flows generated from countries with weaker credit profiles, namely Ukraine (Caa2 positive) and Belarus (B3 stable).

Turkcell's liquidity profile remains sufficient to meet capital outflows over the next 18 months supported by cash balances of TRY7.1 billion as of 30 June 2018, committed unused facilities of EUR730 million (TRY3.9 billion equivalent as of 30 June 2018) of which EUR100 million is due 2021 and EUR630 million is due 2026 and expected funds from operation of between TRY6.5 billion and TRY7.0 billion in the next 12 months.

TURKISH AIRLINES

The confirmation of Turkish Airlines' Ba3 rating from Ba3 ratings under review reflects the airline's healthy operational profile and adequate liquidity position. The assignment of a negative outlook is to reflect alignment with the negative outlook on Turkey's government bond rating. Moody's classifies Turkish Airlines as a government-related issuer (GRI) because of the Government of Turkey's 49.12% ownership stake held through its sovereign wealth fund. The rating incorporates a one-notch uplift from a baseline credit assessment (BCA) of b1 given Moody's moderate government support assumption and high dependence assumption. Moody's assessment of Turkish Airlines' BCA and government support assumptions has not changed as a result of this rating action.

Moody's does not currently see any downward pressure on the b1 BCA given the airline's financial and operational improvements seen in recent quarters, particularly following a rebound in Turkey's tourism sector since the second half of 2017. As of 30 June 2018 (LTM), debt/EBITDA stood at 4.8x (4.6x if FX gains/losses related to financial activities are excluded) and the $1.9 billion of debt due within the next 12 months is manageable given about $2.6 billion of cash balances and Moody's forecasted free cash flow of $1.5 billion.

Traffic data for the first seven months of 2018 has been strong, with passenger load factors reaching 81.2% versus 77.4% over the same period in 2017 while passengers carried increased 15.2% over the same period. The airline has a degree of natural hedge against currency risk, with only 14.1% of revenues collected in lira as opposed to 25.7% of expenses in lira. A significant one-third of the passengers it carries are international-to-international transfers, a revenue source which is less sensitive to the domestic economy. However, the airline is materially exposed to the domestic macroeconomic environment and is reliant upon the smooth functioning of its Istanbul hub. Turkey's government bond rating therefore is a constraint to Turkish Airlines' rating.

TURKISH AIRLINES RELATED EETCS

The ratings of the Class A tranches of the respective EETCs of Turkish Airlines are Ba1. With current equity cushions of about 25% and about 45% for the USD Bosphorus (B777-300ER aircraft) and JPY Anatolia (A321-200 aircraft) transactions, respectively, assigned ratings would normally be higher pursuant to Moody's Enhanced Equipment Trust and Equipment Trust Certificates methodology. However, the ratings also reflect Moody's low assessment of Turkey's institutional strength, which measures government effectiveness, rule of law and independence of key regulatory institutions. This assessment raises concerns about the effective application of the country's laws, the enforceability of creditors rights and the timely repossession of the aircraft securing the EETCs if a payment default was to occur. Having 18-month liquidity facilities external to the Turkish banking system, and the mobility of the aircraft collateral typically operated internationally, which provides the potential to gain possession of the collateral following a payment default, support the ratings assignment.

The Ba1 rating on the Class B tranches of the Anatolia Trust financing considers the same factors affecting the senior tranches of the two EETC financings and Moody's estimate of an equity cushion of about 35%. EETC liquidity facilities are in favor of the Subordination Agents in an EETC transaction. Subordination Agents are agents of the EETC Trusts. BNP Paribas, Paris Branch for the Bosphorus transaction and The Development Bank of Japan for the Anatolia transaction provide the liquidity facilities. These institutions and the respective Trusts, Trustees and Subordination Agents thereof are situated outside of Turkey. Therefore, there should be no impediments to drawings, if the non-payment of interest on a scheduled payment date occurs.

The leases supporting the EETC financings are full payout leases. Moody's expects the equity cushions to grow in upcoming years, albeit more slowly for the Bosphorus financing through 2023. Semi-annual lease payments double from then through the scheduled maturity in 2027. The equity cushion for the Anatolia transaction will modestly improve annually from 2018 through 2023, with larger improvements thereafter as amortization payments increase through its scheduled maturity in 2027.

The airline leases 287 of its fleet of 325 aircraft as at 30 June 2018, the majority of which are financial leases. The company also had 220 aircraft on order at 30 June 2018, the overwhelming majority of which will require financing from external financial markets.

The negative outlook on the EETCs reflects the negative outlook on Moody's ratings of Turkish Airlines and of the Government of Turkey.

TUPRAS

The downgrade of Tupras' ratings to Ba2 with a negative outlook from Ba1 rating under review for downgrade reflects the company's credit linkages to the operating environment in Turkey. The company's core assets are located in Turkey and a majority of its cash flows are generated domestically and therefore Tupras' rating is constrained by Government of Turkey's rating. The rating outlook on Tupras is aligned with the negative outlook on the sovereign rating.

Tupras' rating is positioned one notch higher than the government bond rating to reflect (1) its healthy financial profile and dominant business position in Turkey; and (2) exposure to a commodity business where its refined products can be readily sold in the international markets. Given that Turkey is a significant importer of diesel, Moody's anticipates that the company's competitive position will endure should there be a weakening of the economic environment such that it reduces domestic demand for refined products. As of 30 June 2018 (LTM), Moody's-adjusted debt/EBITDA stood at 3.5x while adjusted net debt/EBITDA stood at 2.5x. For the first five months of 2018, diesel demand in Turkey grew by 12.5% while jet fuel demand grew by 12.6%. Tupras has adequate liquidity, with TRY3.5 billion of short-term debt ($757 million) versus TRY4.6 billion ($997 million) of cash balances (excluding blocked deposits). Moody's also forecasts funds from operations in excess of $900 million over the next 12 months. The company actively manages its currency risk, and its cash flows are naturally hedged from the lira depreciation because domestic sales of petroleum products are indexed to the US dollar.

In May 2018, the Government of Turkey made an adjustment to the special consumption tax on petroleum products such that increases in product prices due to the lira depreciation and/or higher crude oil prices would offset the special consumption tax. This mechanism enabled petroleum product prices to remain fixed and this change did not have any financial impact on Tupras. While not anticipated, any amendment in Turkey's regulatory framework that causes a financial burden on Tupras is likely to weigh on the current rating.

SISECAM

The downgrade of Sisecam's ratings to Ba2 with a negative outlook from Ba1 ratings under review reflects its exposure to the Turkish economy, with around two fifths of its revenues generated in Turkey, and an additional fifth produced and exported from the country. Sisecam's rating remains one notch above the sovereign rating of Turkey at Ba2, reflecting its leading market position in Turkey, balanced revenue and product mix, as well as the group's strong financial profile and robust liquidity position. The negative outlook assigned is aligned with the negative outlook on Turkey's government bond rating.

Sisecam has a strong liquidity profile, supported by cash and cash equivalents of TRY2.9 billion ($0.6 billion) as well as financial assets held to maturity of TRY2.2 billion ($0.5 billion) as of 30 June 2018. In addition, Moody's expects Sisecam to generate positive free cash flow until it enters into a new investment cycle. Sisecam had TRY2.8 billion ($0.6 billion) of short-term borrowings as of 30 June 2018. 74% of the company's debt was denominated in US dollar and euro as of 30 June 2018, with another 19% denominated in Russian rouble. The company's $500 million bond matures in May 2020.

YASAR

The downgrade of Yasar's ratings to Caa1 with a negative outlook from B2 negative reflects our expectations of a deterioration in the company's liquidity and financial profiles as a result of tighter financial conditions and a weaker exchange rate. Yasar's high exposure to short-term debt will result in a rapid increase in its interest burden, while the depreciation of the Turkish lira will result in an increase in its debt burden and servicing costs, constraining the financial profile recovery Moody's had been anticipating. In addition, reduced access to external capital markets could constrain Yasar's ability to refinance its $250 million bond maturing in May 2020. The company's business profile remains supported by strong market positions and diversification in the food and beverages and paint coatings segments.

The negative outlook reflects our view that the company is exposed to further downside risks given its revenue concentration in Turkish lira and low hard currency reserves which provide limited natural hedges against further depreciation in the Turkish lira.

Yasar's liquidity profile is currently weak as a result of the company's high exposure to short-term debt refinancing. As of 31 March 2018, Yasar short-term debt was around 27% of total debt. The company remains particularly exposed in the event of a sudden lack of market access to funding, as it continues to rely on short-term debt being rolled-over -- albeit to a lower extent than in 2017 -- without a corresponding access to sufficient cash balances or committed credit facilities.

WHAT COULD CHANGE THE RATINGS UP/DOWN

EFES

Efes' rating is constrained by the Government of Turkey's Ba3 negative rating and upward pressure on the rating is unlikely at this stage because of Efes' credit linkages with Turkey. Positive pressure on the sovereign rating could lead to positive pressure on Efes' rating if it maintains debt/EBITDA for its beer operations below 4.0x (4.7x as of 30 June 2018) and EBIT/interest expense above 3.0x (3.1x as of 30 June 2018).

The rating could be downgraded if Efes failed to maintain debt/EBITDA for its beer operations below 4.5x or EBIT/interest expense above 2.0x. Negative rating pressure could also occur if the group's liquidity were to deteriorate substantially. Any assessment would also take into account the benefits of Efes' ownership stake in CCI. A downgrade of Turkey's government bond rating or foreign currency bond ceiling would likely result in the downgrade of Efes' rating.

CCI

CCI's rating is constrained by the government of Turkey's Ba3 negative rating and upward pressure on the rating is unlikely at this stage because of CCI's credit linkages with Turkey. Positive pressure on the sovereign rating could lead to positive pressure on CCI's rating if current credit metrics are sustained.

The rating could be downgraded if CCI failed to maintain high single-digit EBITA margin (13.5% as of 30 June 2018), RCF/net debt in the high teens (38.1% as of 30 June 2018), or if debt/EBITDA trends towards 4.0x (3.8x as of 30 June 2018). A reassessment of the bottler support assumptions could also affect the rating and result in a downgrade. A downgrade of Turkey's government bond rating or foreign currency bond ceiling would likely result in the downgrade of CCI's rating.

ERDEMIR

Moody's could upgrade Erdemir's ratings if it were to upgrade Turkey's sovereign rating, provided that the company's operating and financial performance, market position and liquidity do not deteriorate materially.

Moody's could downgrade Erdemir's ratings if it were to downgrade Turkey's sovereign rating, or if the company's Moody's-adjusted total debt/EBITDA were to increase above 3.5x on a sustained basis, or if its operating performance, market position or liquidity were to deteriorate materially.

KOC HOLDING

Given the credit linkages between the Koc Group's investments and the operating environment in Turkey, an upgrade of Koc Holding's rating is unlikely at this stage. The company's rating could be upgraded if Turkey's sovereign rating is upgraded in combination with the Koc Group's investments continuing to display a strong financial profile including market value-based leverage (MVL) remaining below 40% (-5.3% as of 30 June 2018).

Koc Holding's rating could come under negative pressure if Moody's expects that MVL will exceed 45% on a forward-looking basis, for instance as a result of a structural decline in the value of investments during a period of increased leverage and a weaker liquidity position.

Negative pressure on Turkey's sovereign rating could place downward pressure on Koc Holding's ratings.

OYAK

Given OYAK's close links with the Turkish economy and dependency on the economic base from which the investments generate income, OYAK's rating is constrained at one notch above the Government of Turkey's Ba3 rating. There could be positive pressure on OYAKs rating if Turkey's sovereign bond rating is upgraded.

A weakening of the Turkish economy could impact the ability of OYAK's holdings to pay dividends in line with previous years. This could have implications for OYAK's FFO interest coverage ratio and, were the ratio to be sustained below 2.0x (3.3x as of 31 December 2017), Moody's could downgrade the rating in the absence of a strong liquidity profile. OYAK's rating could also come under pressure should cash flow distributions to members increase significantly and therefore weaken OYAK's liquidity profile. Negative pressure on Turkey's sovereign rating could put downward pressure on OYAK's ratings.

PETKIM

An upgrade of Petkim's rating is unlikely at this stage given the negative outlook. Positive pressure would require evidence on the degree of cash savings that the company will be able to realize once the STAR refinery is fully operational. An upgrade of the rating would also require a strengthening of Petkim's liquidity position as well as an improvement in credit metrics such that adjusted debt to EBITDA is sustained below 3.0x.

The rating could be downgraded if Petkim's liquidity position does not show signs of an improving trend following the final payment due in early 2019 for the purchase of the STAR refinery stake. Downward pressure on the rating could also occur if adjusted gross debt to EBITDA is sustained above 4.5x, as a result for example from a weaker operating environment or debt-funded capital spending.

RONESANS

Moody's does not expect any upward rating action as Ronesans' rating is constrained at the same level as the Government of Turkey's issuer rating given that 100% of Ronesans' net income and property exposure are derived within Turkey. Any positive rating action would depend on positive pressure on Turkey's issuer rating as well as strengthening financial metrics such that Ronesans (1) continues to grow scale with a stable operating profile and prudent financial and operating policies; (2) maintains an overall strong liquidity profile, with sufficient cash balances to cover upcoming debt maturities; and/or (3) were to maintain leverage - as measured by adjusted total debt/gross assets - comfortably below 45% (37% as of 31 December 2017) and a fixed-charge cover above 2.0x (1.4x as of 31 December 2017) on a sustainable basis.

The rating would come under downward pressure if (1) Government of Turkey's issuer rating is downgraded from Ba3; (2) corporate governance provisions limiting the ability of its shareholders to impact Ronesans' business, financial and liquidity profile were not to prove to be as robust as expected; (3) debt-financed acquisition or change in capital structure such that leverage in terms of adjusted total debt/gross assets is trending above 50% or fixed-charge coverage trends below 1.5x on a sustainable basis; and/or; (4) unexpected operating difficulties that negatively affect operational performance or valuations.

TURKCELL

Given the current sovereign rating constraint, an upgrade of the rating at this stage is unlikely. Ratings could be upgraded if the ratings of the Turkish government were to be upgraded and Turkcell continues to demonstrate stable operating performance with a conservative financial and liquidity profile.

Turkcell's rating could come under negative pressure if the rating of the Government of Turkey were to be downgraded, given the strong credit inter-linkages between Turkcell and the Turkish economy.

There could also be negative pressure on Turkcell's rating if its liquidity profile deteriorates and it increased its investment and acquisition plans or shareholder returns such that (1) RCF/debt ratio were to fall below 25% (30.8% as of 31 March 2018); (2) Debt/EBITDA were to move above 3.5x (taking into account the company's liquidity profile)(2.2x as of 31 March 2018); (3) (EBITDA - capex)/interest expense ratio were to fall below 3.0x (1.8x as of 31 March 2018) on a persistent basis.

TURKISH AIRLINES

Upward pressure on Turkish Airlines' rating is unlikely at this stage given that the Government of Turkey's Ba3 rating has a negative outlook. The b1 BCA could be upgraded if Turkish Airlines sustainably maintains adjusted debt to EBITDA below 5.0x and EBIT interest coverage above 2.5x and once there is clarity on Turkey's macroeconomic trendline.

The rating could be downgraded if Turkish Airlines' gross leverage trends toward 7.0x, and its EBIT interest coverage trends toward 1.5x. Any change in Moody's current GRI support assumptions could also negatively affect ratings. In addition, a downgrade could also occur if the company's liquidity became strained, potentially as a result of its aircraft acquisition programme combined with weak operating cash flows. A downgrade of Government of Turkey's rating is likely to result in the downgrade of Turkish Airlines' rating.

TURKISH AIRLINES RELATED EETCS

Increases in the government's or Turkish Airlines' ratings could lead to upgrades of the EETC ratings. Downgrades of either or both of these entities' ratings or lowering of the country ceilings for Turkey could lead to further downgrades of the EETC ratings.

TUPRAS

The rating is constrained by the Government of Turkey's rating and upward pressure on the rating is unlikely at this stage because of Tupras' credit linkages with Turkey. A positive pressure on the sovereign rating could lead to positive pressure on Tupras' rating along with adjusted gross debt/EBITDA maintained below 3.5x and adjusted EBIT/interest cover above 4.0x.

The rating could be downgraded if adjusted gross debt/EBITDA trends above 4.0x and adjusted EBIT/interest cover trends towards 3.0x. Negative rating pressure on the sovereign will lead to negative pressure on Tupras' rating.

SISECAM

Sisecam's rating is constrained by the Government of Turkey's Ba3 negative rating and upward pressure on the rating is unlikely at this stage because of Sisecam's credit linkages with Turkey. Positive pressure on the sovereign rating could lead to positive pressure on Sisecam's rating if current credit metrics are sustained.

The rating could be downgraded if Sisecam failed to maintain high single-digit EBITA margin (18.1% as of 30 June 2018), or debt/EBITDA below 4.0x (2.3x as of 30 June 2018). A downgrade of Turkey's government bond rating or foreign currency bond ceiling would likely result in the downgrade of Sisecam's rating.

YASAR

Although unlikely in the near-term given the negative outlook, an upgrade would require a material and sustained improvement in the company's liquidity profile, associated with credit metrics commensurate with a B3 rating such that EBIT margin is maintained above 6% (7.2% as of 31 December 2017), debt/EBITDA below 5.0x (5.5x as of 31 December 2017), and EBIT/interest is maintained above 1.0x (0.6x as of 31 December 2017).

The rating could be downgraded if further evidence of the company's inability to refinance its short-term debt maturities or access the international capital markets become apparent.

LIST OF AFFECTED RATINGS

Issuer: Anadolu Efes Biracilik ve Malt Sanayii A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba2 From Ba1

....Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Coca-Cola Icecek A.S.

Downgraded after being on review for downgrade:

.... Corporate Family Rating, Downgraded To Ba2 From Ba1

.... Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Dogus Holding A.S.

Downgraded after being on review for downgrade and left on review for further downgrade:

.... Corporate Family Rating, Downgraded To B1 From Ba2

.... Probability of Default Rating, Downgraded To B1-PD From Ba2-PD

Outlook Actions:

....Outlook, Remains Rating Under Review

Issuer: Eregli Demir ve Celik Fabrikalari T.A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba3 From Ba2

....Probability of Default Rating, Downgraded To Ba3-PD From Ba2-PD

Affirmed:

.NSR Corporate Family Rating, Affirmed Aa1.tr

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Koc Holding A.S.

Downgraded after being on review for downgrade:

.... Corporate Family Rating, Downgraded To Ba2 From Ba1

.... Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Ordu Yardimlasma Kurumu (OYAK)

Downgraded after being on review for downgrade:

.... Corporate Family Rating, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Ronesans Gayrimenkul Yatirim A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba3 From Ba2

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba3 From Ba2

Outlook Actions

....Outlook, Changed To Negative From Rating Under Review

Issuer: Turkcell Iletisim Hizmetleri A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba2 From Ba1

....Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions

....Outlook, Changed To Negative From Rating Under Review

Issuer: Turk Hava Yollari Anonim Ortakligi

Confirmed after being on review for downgrade:

....Corporate Family Rating, Confirmed Ba3

....Probability of Default Rating, Confirmed Ba3-PD

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Yasar Holding A.S.

Downgraded:

....Corporate Family Rating, Downgraded To Caa1 From B2

....Probability of Default Rating, Downgraded To Caa1-PD From B2-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Caa1 From B2

Outlook Actions:

....Outlook, Remains Negative

Issuer: Petkim Petrokimya Holding A.S.

Affirmed:

....Corporate Family Rating, Affirmed B1

....Probability of Default Rating, Affirmed B1-PD

....Senior Unsecured Regular Bond/Debenture, Affirmed B1

Outlook Actions:

....Outlook, Changed To Negative From Stable

Issuer: Turkiye Petrol Rafinerileri A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba2 From Ba1

....Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Turkiye Sise ve Cam Fabrikalari A.S.

Downgraded after being on review for downgrade:

....Corporate Family Rating, Downgraded To Ba2 From Ba1

....Probability of Default Rating, Downgraded To Ba2-PD From Ba1-PD

....Senior Unsecured Regular Bond/Debenture, Downgraded To Ba2 From Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Anatolia Pass Through Trust

Downgraded after being on review for downgrade:

....Senior Secured Enhanced Equipment Trust Class A, Downgraded to Ba1 from Baa1

Confirmed after being on review for downgrade:

....Senior Secured Enhanced Equipment Trust Class B, Confirmed at Ba1

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

Issuer: Bosphorus Pass Through Trust 2015-1A

Downgraded after being on review for downgrade:

....Senior Secured Enhanced Equipment Trust, Downgraded to Ba1 from Baa2

Outlook Actions:

....Outlook, Changed To Negative From Rating Under Review

The principal methodology used in rating Turkcell Iletisim Hizmetleri A.S. was Telecommunications Service Providers published in January 2017. The principal methodologies used in rating Turk Hava Yollari Anonim Ortakligi were Passenger Airline Industry published in April 2018, and Government-Related Issuers published in June 2018. The principal methodology used in rating Petkim Petrokimya Holding A.S. was Chemical Industry published in January 2018. The principal methodology used in rating Turkiye Sise ve Cam Fabrikalari A.S. was Global Manufacturing Companies published in June 2017. The principal methodology used in rating Anadolu Efes Biracilik ve Malt Sanayii A.S. was Global Alcoholic Beverage Industry published in March 2017. The principal methodology used in rating Coca-Cola Icecek A.S. was Global Soft Beverage Industry published in January 2017. The principal methodology used in rating Yasar Holding A.S. was Global Packaged Goods published in January 2017. The principal methodology used in rating Ronesans Gayrimenkul Yatirim A.S. was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. The principal methodology used in rating Eregli Demir ve Celik Fabrikalari T.A.S. was Steel Industry published in September 2017. The principal methodology used in rating Dogus Holding A.S., Ordu Yardimlasma Kurumu (OYAK) and Koc Holding A.S. was Investment Holding Companies and Conglomerates published in July 2018. The principal methodology used in rating Turkiye Petrol Rafinerileri A.S. was Refining and Marketing Industry published in November 2016. The principal methodologies used in rating Bosphorus Pass Through Trust 2015-1A and Anatolia Pass Through Trust were Enhanced Equipment Trust and Equipment Trust Certificates published in July 2018, and Passenger Airline Industry published in April 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons, please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1113601.

The local market analyst for Turkiye Petrol Rafinerileri A.S. and Petkim Petrokimya Holding A.S. ratings is Rehan Akbar, +971 (423) 795-65.

The local market analyst for Anadolu Efes Biracilik ve Malt Sanayii A.S., Coca-Cola Icecek A.S., Turkiye Sise ve Cam Fabrikalari A.S., and Yasar Holding A.S. ratings is Thomas Le Guay, +971 (423) 795-45.

The local market analyst for Koc Holding A.S., Turkcell Iletisim Hizmetleri A.S. and Ronesans Gayrimenkul Yatirim A.S. ratings is Dion Bate, +971 (423) 795-04.

CORPORATE PROFILES

EFES

Headquartered in Istanbul, Efes is Turkey's leading beer producer with a 60% market share in the first half of 2018. Efes also sells beer in Russia (Ba1 positive), its largest market in terms of volume, Kazakhstan (Baa3 stable), Ukraine (Caa2 positive), Moldova (B3 stable) and Georgia (Ba2 stable). Efes owns 50.3% of the capital of CCI, Turkey's leading soft drink producer whose geographical reach includes other Middle Eastern and Central Asian countries. The company reported consolidated sales of TRY15.0 billion ($3.9 billion) in the 12 months to 30 June 2018, including TRY5.5 billion ($1.4 billion) in beer sales.

CCI

Coca-Cola Icecek is the sixth-largest independent bottler in the Coca-Cola system as measured by sales volume. The company produces and distributes soft beverages in Turkey, Central Asia, Pakistan and the Middle East. The company is listed and headquartered in Turkey, with a market capitalization of TRY7.2 billion ($1.2 billion) as of 27 August 2018. CCI generated sales of TRY9.4 billion ($2.5 billion) in the 12 months to 30 June 2018. The company is 50.3% owned by Anadolu Efes Biracilik ve Malt Sanayii A.S. (Efes, Ba2 negative) and 20.1% by The Coca-Cola Company (TCCC; Aa3 negative).

DOGUS

Headquartered in Istanbul, Turkey, Dogus Holding A.S. is an investment holding company owned by the Sahenk family. It comprises more than 200 companies, which are active in seven sectors: automotive, construction, media, tourism & services, real estate, food & entertainment and energy. The company's main activities are tied to the Turkish economy, but the company is aiming to create regional leaders in their respective industries. As of 31 December 2017, Dogus Holding reported consolidated assets of TRY36.5 billion and revenue of TRY20.4 billion.

ERDEMIR

Eregli Demir ve Celik Fabrikalari T.A.S. is the largest integrated steel manufacturer in Turkey with a steel production capacity of around 9.6 million tons per year. Erdemir produces both flat (85% of steel produced in 2017) and long steel products. The vast majority of Erdemir sales (81% in 2017) are domestic, the remainder being sold on the international markets, mostly in EMEA.

Erdemir produced 9.4 million tonnes of liquid steel and generated revenues of $5.5 billion for the last 12 months ended 30 June 2018. Erdemir's largest shareholder is Ordu Yardimlasma Kurumu (OYAK), the Turkish private pension fund primarily serving members of the Turkish Armed Forces, who holds 49.3% of Erdemir's shares through Ataer Holding. Erdemir is quoted on the Istanbul stock exchange and its market capitalisation was approximately $6.4 billion as of 22 August 2018. Free float is around 47.6%.

KOC HOLDING

Founded in 1926, Koc Group is one of Turkey's most prominent business groups, with investments in various sectors including energy, automotive, consumer durables and finance. Koc Holding A.S. was established in 1963 to house and centrally manage the group's diverse investment portfolio. The Koc family members directly and indirectly own 64.3% of the holding company while another 26.5% is listed on Borsa Istanbul.

OYAK

Ordu Yardimlasma Kurumu (OYAK), based in Ankara/Turkey, is the private top-up pension fund for Turkish military personnel, and is governed by its own laws and run by professionals. As a mutual assistance organisation, its purpose is to provide permanent members with retirement, death and pension benefits, and to make personal loans. OYAK functions as an additional pillar to the state pension system. OYAK's investments cover a broad range of industries including iron and steel, cement and concrete, automotive and logistics, energy, financial services, and chemicals and pharmaceuticals. As of fiscal year-end 2017, OYAK reported total consolidated assets of TRY73.9 billion and revenue of TRY37.0 billion.

PETKIM

Petkim Petrokimya Holding A.S. is the sole petrochemical producer in Turkey and was established in 1965 by the Turkish government. The company is listed since 1990 on the Istanbul Stock Exchange and was fully privatized in 2008. Petkim is currently 51% owned by SOCAR Turkey Energy A.S., which in turn is 87% owned by State Oil Company of the Azerbaijan Republic (SOCAR) while the remaining 49% is publicly listed.

The company's operations are located in Aliaga, about 50 kilometers from Izmir in western Turkey. The petrochemical complex has 14 primary production plants including a 588,000 ton/year ethylene cracker. About 70% of the company's products are sold domestically which translates into a ca. 20% market share for Petkim in Turkey while the remaining 30%, many of which are aromatics that have little demand within the country, are exported. For the last 12 months ending 30 June 2018, Petkim reported revenues of TRY8.0 billion ($2.1 billion) and net income of TRY1.2 billion ($321 million).

RONESANS

Ronesans Gayrimenkul Yatirim A.S. is one of the largest retail focused commercial property owner and manager in Turkey with a total portfolio value of EUR2.1 billion (stake adjusted for JV's). The property portfolio comprises of 10 dominant shopping centers (84% of GLA) of which three are a 50/50 joint venture with GIC and one with Amstar Global Partners (AGP); and two offices (16% of gross leasable assets - GLA) with a total GLA of 685sqm. It has also one property under development valued at EUR148 million and 11 land bank plots for future development opportunities valued at EUR259 million.

TURKCELL

Turkcell Iletisim Hizmetleri A.S., headquartered in Istanbul, Turkey and established in 1993, started operations as a mobile telephony service provider in Turkey in 1994 and acquired a 25-year GSM license in 1998; a 20-year 3G license granted in April 2009; and a 4.5G license effective for 13 years until April 30, 2029. Today Turkcell is an integrated communication and technology service provider in Turkey. The company shares its domestic market with two other players and captures 41.3% of the total telephony market and around 44% of the mobile subscribers according to Information and Communication Technologies Authority (ICTA). Over the years Turkcell has expanded its operations into Ukraine, Belarus, Azerbaijan and Turkish Republic of Northern Cyprus.

For the last 12 months to 30 June 2018, the company reported revenues of TRY19.1 billion, EBITDA of TRY7.5 billion, total debt of TRY18.5 billion and cash & cash equivalents of TRY7.1 billion.

TURKISH AIRLINES

Founded in 1933, Turkish Airlines is the national flag carrier of the Republic of Turkey and is a member of the Star Alliance network since April 2008. Through the Ataturk International Airport in Istanbul acting as the airline's primary hub, the airline operates scheduled services to 255 international and 49 domestic destinations across 122 countries globally. It operates a fleet of 215 narrow-body, 92 wide-body and 18 cargo planes. For the last 12 months ending 30 June 2018, the company reported revenues of $12.3 billion and a net profit of $698 million.

TUPRAS

Turkiye Petrol Rafinerileri A.S. is the sole refiner in Turkey, with a dominant position in the domestic petroleum product market. The refining business consists of one very high complexity refinery in Izmit, two medium complexity refineries located in Izmir and Kirikkale and one simple refinery in Batman, with a combined annual crude processing capacity of 28.1 million tonnes (611 mbbl/day). Headquartered in Korfez in Turkey, Tupras generated sales of TRY62.5 billion ($16.2 billion) and reported a net profit of TRY2.9 billion ($751 million) for the last 12 months ending 30 June 2018.

SISECAM

Founded in 1935, Sisecam is a Turkish industrial manufacturer of glass products as well as soda ash and chromium-based chemicals. Sisecam has four business segments operating through its core subsidiaries, namely Trakya Cam Sanayii A.S. (flat glass), Pasabahce Cam Sanayii ve Tic A.S. (glassware), Anadolu Cam Sanayii A.S. (glass packaging) and Soda Sanayii A.S. (chemicals). Over the past decade, the group has been increasing its geographical footprint in Eastern Europe, Western Europe and CIS as part of its growth strategy. Sisecam is 65% owned by Turkiye Is Bankasi A.S. and 8% owned by Efes Holding A.S., with the remaining 27% listed on Borsa Istanbul. Sisecam reported consolidated revenues of TRY12.6 billion ($3.3 billion) and an operating profit of TRY2.2 billion ($0.6 billion) in the 12 months to 30 June 2018.

YASAR

Established in 1945, Yasar is a leading diversified Turkish consumer products group with major interests in food and beverage (F&B) and paint coatings, with two leading brands: Pinar and Dyo. Yasar reported TRY4.3 billion ($1.2 billion) of sales and TRY394 million ($107 million) of operating profits in in the 12 months to 31 March 2018, and operated 24 plants and more than 170,000 sales points across Turkey in 2017. The company is fully owned and controlled by the Selcuk Yasar family.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

The person who approved Turkiye Petrol Rafinerileri A.S., Anadolu Efes Biracilik ve Malt Sanayii A.S., Coca-Cola Icecek A.S., Dogus Holding A.S., Koc Holding A.S., Ordu Yardimlasma Kurumu (OYAK), Turkcell Iletisim Hizmetleri A.S., Turkiye Sise ve Cam Fabrikalari A.S., Ronesans Gayrimenkul Yatirim A.S., Turk Hava Yollari Anonim Ortakligi, Petkim Petrokimya Holding A.S., Yasar Holding A.S. credit ratings is David G. Staples, MD - Corporate Finance, Corporate Finance Group, JOURNALISTS: 44 20 7772 5456, Client Service: 44 20 7772 5454.

The person who approved Eregli Demir ve Celik Fabrikalari T.A.S. credit ratings is Anke N Richter, CFA, Associate Managing Director, Corporate Finance Group, JOURNALISTS: 44 20 7772 5456, Client Service: 44 20 7772 5454.

The person who approved Bosphorus Pass Through Trust 2015-1A and Anatolia Pass Through Trust credit ratings is Robert Jankowitz, MD - Corporate Finance, Corporate Finance Group, JOURNALISTS: 1 212 553 0376, Client Service: 1 212 553 1653.

The relevant office for each credit rating is identified in "Debt/deal box" on the Ratings tab in the Debt/Deal List section of each issuer/entity page of the website

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Denis Perevezentsev
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service Limited, Russian Branch
7th floor, Four Winds Plaza
21 1st Tverskaya-Yamskaya St.
Moscow 125047
Russia
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

David G. Staples
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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