In the first quarter of this year, KARDEMİR stood out with its profit announcement that exceeded the market expectations, and reinforced its reliable and sustainable structure.
In the written statement made by KARDEMİR, it was stated as follows: Our company, Japan Credit Rating Agency, Ltd. evaluated by the group company JCR Avrasya Rating based on consolidated financial data. Especially in the first quarter of 2021, our company, which stands out with its profit announcement above the expectations of the markets, has reinforced its reliable and sustainable structure.
Strong presence in the local market and industry experience, establishment of reliable and deep-rooted business relationships at local and international level, strong SALES REVENUES and EBITDA growth during the 2020th quarter of 4 and the 2021st quarter of 1, high profit generation, effective balance sheet management, strong cash flow supported by the solid financial structure, increased transparency in the light of corporate governance principles as an institution subject to the Capital Market Law, fluctuations in external factors affect income and profitability figures, and the ongoing global economic slowdown with the Covid-19 epidemic affects steel prices, demand and investment plans. The following ratings have been made.
- Long Term International Foreign Currency BB +
- Long Term International Local Currency Rating BB +
- Long Term National Rating AA-
- Short Term International Foreign Currency B
- Short Term International Local Currency Rating B
- Short Term National Rating A-
- Support Grade 2
- Independence Rating from Shareholders A
In the evaluation of the rating company, besides the improvement in the operational area, the increase in the product sales price and the increase in operational efficiency and profitability draw attention. Operational cash generation, production capacity reaching a predictable level, reduction in debt level and reduction in risks arising from foreign currency position, high profit margin expected from railway wheel investment and engineering steel products, market share in the sector, cash flow facilitating liquidity management, asset quality, decreasing investment cost The sustainability policies aimed at institutionalization and the high grades achieved by its strong and stable management team demonstrate the strong financial and corporate structure of Kardemir.
With the evaluation of JCR Avrasya, we would like to state that Kardemir will continue to transform into a more transparent, innovative, sustainable, investor-friendly company with our board of directors, professional senior management and all our employees.