Fitch Ratings has upgraded Turkish Airlines’ long-term foreign and local-currency issuer ratings to BB from BB-. In addition, the company's Standalone Credit Profile (SCP) has been revised up to 'bb' from 'bb-'.
The SCP revision reflects Fitch's expectation that Turkish's credit metrics will stabilise at more “favourable” levels than previously anticipated, with EBITDAR leverage of 3 -3.5x during 2024 through to 2027.
This revision also factors in the airlines loosened debt capacity, in comparison to its peers.
The SCP reflects foreign-exchange exposure and reliance on Türkiye as the key market but also its strong market position as one of the top five carriers in Europe and the Middle East, with EBITDAR margins close to 20%.