JCR Eurasia Rating has evaluated the consolidated structure of Odaş Elektrik Üretim Sanayi Ticaret A.Ş. within the scope of periodic review and upgraded its Long Term National Rating to ‘BBB(Trk)/Stable’ on the Long Term National Scale and affirmed its Lo

JCR Eurasia Rating has evaluated the consolidated structure of Odaş Elektrik Üretim Sanayi Ticaret A.Ş. within the scope of periodic review and upgraded its Long Term National Rating to ‘BBB (Trk)/Stable’ on the Long Term National Scale and affirmed its Long Term International Foreign and Local Currency Ratings as ‘BBB-/Stable’. Details along with all notes are shown below.

Long Term International Foreign Currency


BBB- / (Stable outlook)

Long Term International Local Currency


BBB- /( Stable outlook)

Long Term National Rating


BBB (Trk) / (Stable outlook)

Long Term National Issue Rating

BBB (Trk)

Short Term International Foreign Currency


A-3 / (Stable outlook)

Short Term International Local Currency


A-3 / (Stable outlook)

Short Term National Rating


A-3 (Trk) / (Stable outlook)

Short Term National Issue Rating


A-3 (Trk)

Sponsor Support



Stand Alone



Odaş Elektrik Üretim Sanayi Ticaret A.Ş. (Odaş Enerji) refers to a consolidated group of companies operating in electricity production-distribution, natural gas distribution and mining sectors. In addition to the 140 MW natural gas-fired power plant installed in Şanlıurfa and an 8.2 MW hydroelectric power plant in Trabzon, the Group continues to invest in a thermal power plant with a capacity of 340 MW. Acquiring precious metal reserves and operating licences, the Group has invested in gold, silver and antimony mines. The parent shares were offered to the public in 2013 and its shares are traded in the BIST 100 index.

Thanks to the advantageous structure of the regional supply/demand conditions experienced by Şanlıurfa natural gas power plant can sell at prices well above the average spot electricity prices. As for the hydroelectric power plant Group, which has the government incentive-supported tariff, enables the energy generation unit to operate with high profitability. A thermal power plant with an installed power of 340 MW in Çanakkale has a mining license for the coal field located in the same region. The thermal power plant will be able to operate with high efficiency as the reserve stated as above the average calorific value of the country’s lignite mines is used for energy production, according to projections. Furthermore, the domestic coal incentives and the fact that high calorific value will enable the sale of the reserves to the market indicate positive upside potential.

Income expected from the power plant in the second half of 2017 is expected to cover the financing costs of the EUR-based long-term loan. With the production capacity reaching 488 MW from the 148 MW level and generating income from ongoing precious metal investments, the sales figures in the Group’s console will increase significantly and the pressure created by the external resources used to finance the aforementioned investments will be balanced. Group’s access to financial markets has continued in a depressed economic climate and the continuity of such funding channels is crucial to the Group's long-term potential for the viability of the investments.

Odaş Enerji's profitable production model of existing power plants, the long-term strategic plan to develop the integrated value chain, the high level of the internal efficiency rate of the ongoing thermal power plant investment and the contribution to the cash flow, the long term financing structure and the access to capital markets are considered as a strength of the Group. The profitability figures despite of the ongoing investment process & capex and the strong level of cash flows and the fact that the physical progression level of the thermal power plant as expected reduce operational uncertainty constitute the basis for the upgrade of Long Term National Rating to "BBB (Trk)". On the other side, the impact of EUR based bank debts on the balance sheet, the trend of energy prices and energy production input costs and the performance of revenue projections of thermal power plants and mining investments will continue to be closely monitored.

Considering the current size of the ongoing investments and growth potential of the Group, the shareholders of Odaş Enerji, both Özal and Altay Families and the public shareholders are thought to have the willingness ensure financial and operational support to the Group. On the other hand, accounting for the previously completed rights issue in 2015 and the fact that more than one third of the shares are publicly held, further fund raising via the money markets might be limited. Therefore, Odaş Enerji’s Sponsor Support Grade has been assigned as (3), which indicates adequate level. The company’s Stand Alone Rating is determined as (B) that corresponds to sufficient level of capacity to generate resources internally without depending its shareholders or any other external party.

For more information related with the rating results you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mr. Özgür Fuad Engin.


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