Mersin, Turkey (PortSEurope) June 19, 2019 – Moody’s Investors Service has downgraded to B1 from Ba2 the corporate family rating (CFR) of Turkey’s largest container port Mersin Uluslararasi Liman Isletmeciligi A.S. (Mersin International Port or MIP).
Concurrently, Moody’s has downgraded MIP’s senior unsecured rating to B1 from Ba2 and its probability of default rating to B1-PD from Ba2-PD. The outlook remains negative.
As a Turkish domiciled company with most of its assets located in Turkey, MIP’s debt ratings would not be expected to be rated higher than the Turkish foreign currency bond ceiling. Consequently, today’s rating action reflects the constraints placed on MIP’s ratings by the sovereign rating and Turkish foreign currency bond ceiling, given the multiple channels of exposure and contagion that exist between the sovereign and local corporate issuers. The continuous weakening of Turkey’s institutional strength and the increased financial stress in the country could negatively affect MIP’s operational and financial performance.
MIP operates under a long-term concession granted by the state, and all its assets and the services the company provides as a port operator are within Turkish jurisdiction. Whilst the port benefits from diversification of revenues, with a balanced exposure to imports and exports through its container and cargo divisions, MIP is exposed to the evolving regulatory and legal environment in Turkey.
Mersin International Port Management Inc. (MIP) was established as a partnership between PSA International and Akfen Holding, which took over T.C.D.D. Mersin Port Management for a period of 36 years on May 11 2007.
Mersin International Port (MIP) is connected via railways and highways with Turkey’s industrialized cities such as Ankara, Gaziantep, Kayseri, Kahramanmaraş and Konya, and with bordering countries such as Syria, Iraq and Iran. It is one of the main container ports in the Mediterranean Region with its transit and hinterland connections with the Middle East and the Black Sea.
Mersin International Port (MIP) meets a significant portion of Turkey’s import and export volumes with its vast hinterland, accessible transportation opportunities and qualified human resources.
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