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Bond Market News
Sisecam Downgraded to B by Fitch
December 16, 2024
Turkiye Sise ve Cam Fabrikalari AS (Sisecam) was downgraded by two notches to B from BB- by Fitch. The downgrade reflects deterioration in the market environment for Sisecam in 2024. The company’s revenues and profitability are expected to be negatively impacted due to declining demand, increased competition, and inflationary pressures in Turkey. Also, the company is said to be struggling with managing product pricing while being unable to fully pass on increased costs, especially in its domestic market. The company is focusing on cost optimization but has sacrificed EBITDA margins to preserve market share. According to Fitch, this downturn in margins reflects structural challenges, including low-cost competition. The company’s leverage has increased due to weaker EBITDA and higher debt. While Sisecam has reasonable liquidity with cash reserves and credit lines, the combination of negative FCF and high capex could strain its liquidity.
Its dollar bonds traded slightly negative with its 6.95% 2026s at 101.7, yielding 5.11%.
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