JCR Eurasia Rating evaluated Sarten Ambalaj Sanayi ve Ticaret A.Ş. in an investment grade category and affirmed ratings of ‘BBB(Trk)/Positive’ on the Long Term National Scale along with ratings of ‘BBB-/Stable’ on the Long Term International Foreign and L

JCR Eurasia Rating has evaluated Sarten Ambalaj Sanayi ve Ticaret A.Ş. in an investment level category on a national and international level and affirmed ratings of

‘BBB(Trk)’ on the Long Term National Scale along with a ‘Positive’ outlook. On the other hand, the Long Term International Foreign and Local Currency Ratings have

been affirmed as ‘BBB-’. Other notes and details of the ratings are given in the table below.

Long Term International Foreign Currency

:

BBB- / (Stable Outlook)

Long Term International Local Currency : BBB- / (Stable Outlook)

Long Term National Local Rating : BBB (Trk) / (Positive Outlook)

Short Term International Foreign Currency : A-3 / (Stable Outlook)

Short Term International Local Currency : A-3 / (Stable Outlook)

Short Term National Local Rating : A-3 (Trk) / (Stable Outlook)

Sponsor Support : 2

Stand Alone : B

Sarten Ambalaj Sanayi ve Ticaret A.Ş. consistently increased its operational volume since the time it was first established in 1972 and is among the leading players in

the metal packaging sector through its network of 13 factories dispersed across Turkey, 2 overseas production plants and marketing offices in the neighboring region.

The Company operationalized the first R&D department in 2005, which is not a common feature across the packaging sector, and established Sarten Academy in 2008

in order to meet the demand in qualified personnel stemming from its rapid expansion and attained a ranking among the largest 120 industrial enterprises of Turkey

along with a place among the largest 250 exporters of Turkey as of FYE2014. In line with its mission of integration into global markets, the Company signed a

partnership agreement with Mitsui & Co Europe, one of the world’s leading companies in the current financial year and aims to increase its presence and competitive

strength across international markets.

The rising levels of urbanization, population, household income and participation of women in the workforce, the growth experienced in sectors such as food,

cosmetics and industrial products to which the packaging sector is a major supplier, the spreading network of large retail chains across the country and high quality

manufacturing standards stimulated by the ongoing EU negotiation periods constitute the major factors that will contribute to the growth and development of the

sector in general and Sarten Ambalaj in particular. The informal economy observed across small and medium sized packaging producers, high levels of dependence with

respect to raw material supply and the persistent economic difficulties and political uncertainty in Europe and the Middle East, representing the sector’s largest export

markets, are the major issues facing the sector. However, the outlook for the sector remains positive due to its high growth potential stemming from the low levels of

per capita packaging consumption in comparison to the averages observed in developed countries. The production facilities supported by high technology investments

and compliant with international quality certificates, the diversification recently recorded in the export markets, corporate customer portfolio spread across various

sectors with minimal concentration risk, high share of food sector in sales revenues with minimal impacts from economic crises and re-structuring of risk management

processes following the international partnership are the principal factors that provide the Company with the capability to withstand possible risks in the market.

The internal equity generation capacity of the Company, which financed its expanding operational volume primarily via external foreign currency denominated financial

resources, came under pressure as it was subject to foreign exchange losses in the current financial year due to the devaluation of the Turkish Lira recorded since the

beginning of the year stemming from the uncertainty generated by the domestic general election period and the impact of rate rises by the US Federal Reserve and

subsequent volatility on emerging markets. However, the rises recorded in sales and export revenues, the realization of sales to domestic customers indexed to foreign

currency and undertaking of forward transactions are the major factors that will balance the potential losses generated by foreign currency risk.

Despite lacking the capability to assess the financial strength of the Sarıbekir Family, the Company’s majority shareholder following the international partnership, they

are assumed to have the willingness to supply long-term liquidity and equity as well as lending effective operational support to Sarten Ambalaj should such a need arise

taking into account the Company’s established status and market share in the metal packaging sector, the high level of contribution provided by the Company to

employment in the sector and realized capital increase. In this regard, the Company’s Sponsor Support grade has been affirmed as (2) on JCR Eurasia Rating’s notation

scale, denoting a moderate level.

On the other hand, regardless of the support from its shareholders , taking into account the long operational track-record, growth rates, market diversity, large product

portfolio, asset quality, strengthened equity structure following capital injection and successfully executed bond issues, the Company is thought to have reached a level

of experience to manage the incurred risks on its balance sheet provided that the current customer base and effectiveness in the market is preserved along with the

maintenance of current macro-economic conditions. In this regard, the Stand Alone grade of the Company has been affirmed as (B) on JCR Eurasia Rating’s notation

system, denoting a strong level.

For more information regarding the rating results, you may visit our internet site http://www.jcrer.com.tr or contact our analysts Mr. Gökhan IYIGUN and Mr. Dinçer

SEMERCILER.

JCR EURASIA RATING

Administrative Board