JCR Eurasia Rating has affirmed all of the rating notes of BEYAZ FILO Oto Kiralama A.Ş. and revised the outlooks on the Long Term National rating, the Long Term International FC and LC ratings and the Short Term International FC and LC ratings to 'Posit

JCR Eurasia Rating, by assessing “Beyaz Filo Oto Kiralama A.Ş.” within the investment grade, has affirmed all of the rating notes of BEYAZ FILO Oto Kiralama A.Ş. and revised the outlooks on the Long Term National rating, the Long Term International FC and LC ratings and the Short Term International FC and LC ratings to „Positive‟ from „Stable‟. Other notes and details of the ratings are given in the table below:

Long Term International Foreign Currency

:

BB+ /(Positive Outlook)

Long Term International Local Currency

:

BB+ /(Positive Outlook)

Long Term National Local Rating

:

BBB- (Trk) /(Positive Outlook)

Short Term International Foreign Currency

:

B /(Positive Outlook)

Short Term International Local Currency

:

B /(Positive Outlook)

Short Term National Local Rating

:

A-3 (Trk)/(Stable Outlook)

Sponsor Support

:

3

Stand Alone

:

BC

Beyaz Filo Oto Kiralama A.Ş. (Beyaz Filo), which had maintained its activities in the fleet leasing sector with high market shares but entered a phase of contraction during the years following the global crisis, offers maintenance and repair services through an authorized service network in locations across the country.

As evidenced by the continuing downward trend in the number of the vehicles per client during the recent years, SMEs as well as large companies prefer leasing rather than purchasing to meet their vehicle needs notwithstanding the demand by the large-scale companies still constitutes the main growth dynamic for the sector. Moreover, the fact that the campaigns targeted at individuals gather pace creates new growth opportunities for the Turkish fleet leasing sector. Taking further into account increasing awareness with a view to enjoying wide-ranging service packages in the client perspective as well as customer satisfaction and adaptation of high technology throughout the sector, JCR Eurasia Rating maintains its ‘positive’ outlook evaluation for the Turkish fleet leasing sector.

Such factors as loss of market influence due to one of the consequences of the Company’s divestiture strategy and deterioration in net working capital indicators as at the end of June, 2015 are balanced with past inadequate profitability indicators reversing pattern to a degree of generating internal equity, large volatility in equity level streamlined in an upward pattern to outperform the sector averages and maintained liquidity profile. All of these were effective in the upgrade of the outlooks on the International and Long Term National scales. Moreover, regarding the fact that the divestiture strategy having being adopted during the recent periods has evolved into a shift in the business model through enhanced activities in the second hand trading, more stabilized equity level stiffening balance sheet robustness through support of profitability level, albeit its resiliency and predictability reduced to a degree, and the niche field the Company has attained in the fleet leasing sector were the other factors supporting the upgrade of the outlooks. Effects of the said model shift on the cash flows and profitability level of the Company will be the monitoring issue in the periods to come.

JCR Eurasia Rating maintains its opinion that the Company’s controlling shareholders, with executive functions of some of them in the Company’s management, have the adequate experience to provide efficient operational support and have the willingness and adequate propensity to provide financial assistance to Beyaz Filo. However, no public authority and professional organization exist to provide the sector in general with financial support and to eliminate the possible systemic risks to arise therein. Within this context, JCR Eurasia Rating has affirmed the Sponsor Support note of (3) for Beyaz Filo.

It is believed that Beyaz Filo has adequate experience and facilities to manage its obligations, notwithstanding that the shareholders do not provide any financial assistance, provided that efficiency in the second hand market and improvement in its profitability indicators are maintained. In this respect, the Stand Alone note of Beyaz Filo has been affirmed at (BC) under JCR Eurasia Rating notation system.

For more information regarding the rating results you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mr. Zeki M COKTAN.

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