JCR Eurasia Rating affirmed the Long Term National Local Rating at A-(Trk), the Short Term National Local Rating at A-1(Trk) and the Long Term International FC and LC ratings at BBB- of Bimeks Bilgi İşlem ve Dış Ticaret A.Ş. and Cash Flows Relating to the

JCR Eurasia Rating has affirmed the credit ratings of “BIMEKS Bilgi Işlem ve Dış Ticaret A.Ş.” and its “Cash Flows Relating to the Bond Issues” at ‘A- (Trk)’ on the Long Term National Scale and at ‘A-1 (Trk) on the Short Term National Scale, denoting high investment grade ratings, along with ‘Stable’ outlooks on all notes while upgrading the Sponsor Support Note to (2) from (3). JCR Eurasia has also affirmed the Long Term International Foreign and Local Currency ratings 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

:

A- (Trk) /(Positive Outlook)

Long Term Issue Rating

:

A- (Trk)

Short Term International Foreign Currency

:

A-3 /(Stable Outlook)

Short Term International Local Currency

:

A-3 /(Stable Outlook)

Short Term National Local Rating

:

A-1 (Trk)/(Stable Outlook)

Short Term Issue Rating

:

A-1 (Trk)

Sponsor Support

:

2

Stand Alone

:

B

Bimeks, the first company in its sector to become publicly traded in 2011, maintains its operations as one of the first movers in the Technology Super Stores (TSS) channel of the Consumer Electronics Retail sector in Turkey with initiation of its activities dating back to 1990. Bimeks offers its customers via its own franchise model (SbP - Store-based Partnership) in a wide geographical coverage in 59 cities through this channel a wide range of products including computers & components, consumer electronics, telecom products, SDAs and MDAs.

Notwithstanding limitations on credit card use by public authorities forestalling the upward growth path of the TSS channel by both weakening the demand and directing the TSS customers to the channels of CES and TCR, it is assessed that low internet & computer penetration rates, increasing urbanization level and paradigm shifts in consumer behavior are assessed to fuel consumer electronics demand in the medium and long term. Actions taken by Bimeks towards development of alternative payment mechanisms are also expected to balance this adversity.

The Company’s assets with potential to generate higher sales revenues; enhanced product range through additions of high-margin MDA & SDA products with significantly increasing share among categories; increasing market influence through acquisitions; advantages of franchise strength through utilization of enlarged store network for commercial cooperation and customer lending; additions of new sales channels notably bolstering web-based sales; and continuation of steps taken in the risk management implementations were the primary factors in the affirmation of the National notes. On the other hand, JCR Eurasia has assigned a ‘Positive’ outlook status for the long term national local rating regarding the recent public announcement by the Company management on obtaining a long term borrowing facility which is expected to significantly improve the funding structure and net working capital level.

Profitability level Indicators - still at low levels - to be expedited through the enhanced market influence to the extent of generating internal equity against the deterioration of capitalization level and their capacity to underpin growth targets though with low-risk profile, course of financial risk indicators that are currently underperforming, repayment of the principal and coupons of the TRY55 million bonds of an outstanding total of TRY150 million to be redeemed in September, 2016 and its effects in the Company’s financial structure and possible effects of new external long term funding sources expected to be obtained with a view to improving maturity profile of its borrowings will be monitoring issues for further assessments in the following periods.

No separate issue rating report has been prepared as the resources obtained via the debt issue will be carried in the Company’s balance sheet and issue rating analysis has been carried out in the credit rating report. The issue has no difference in comparison to the Company’s other liabilities with respect to legal status and collateralization structure as such the Company’s corporate credit ratings also reflect the issue rating.

It is considered that the controlling shareholders have the willingness to supply long term liquidity or equity for Bimeks when required as evidenced by the absence of any impediments to date in benefiting from the potential of firm shareholder support and that they have the adequate experience to provide efficient operational support although no relevant public institutions, supervisory authorities and professional associations have yet been constituted to provide support to the sector to eliminate possible systemic risks. Although there does not seem to be adequate information to assess whether the controlling main shareholder has sufficient financial strength to provide assistance to Bimeks, sustained involvement of the controlling shareholder throughout all processes within the Company together with the established management structure has been the primary assessment in the upgrade of the Sponsor Support note of Bimeks to (2) from (3). Considering established borrowing mechanisms supported by utilization of alternative funding channels, significantly rising market share together with the attained magnitude of its balance sheet structure and developed facilities to expand geographical coverage without incurring proportionate investment expenditures, it is assessed that Bimeks and its managerial staff have reached the level of adequate experience and facilities to manage its obligations even in case the shareholders do not provide any assistance. Within this context, the Stand Alone note of Bimeks has been affirmed at (B) in the 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.

JCR EURASIA RATING

Administrative Board