Fitch Ratings: Tight liquidity amplifies Lira risk for Turkish companies

"Currency mismatches and reliance on short-term borrowings exacerbate the pressure on the Turkish corporate ratings stemming from the recent lira depreciation and a deteriorated operating environment," the global rating agency, Fitch Ratings said in a report published this Tuesday.

Key quotes

   •  Fitch continues to monitor the companies' credit ratings and the corporates' ability to pass on high costs due to currency mismatch to their customers.

   •  Liquidity profiles for corporates become increasingly significant if volatile conditions persist over time. 

   •  Availability of bank credit lines may become more restricted if the impact of currency crisis intensifies on Turkish banks. 

   •  Relatively short-term maturity profiles of corporate debt could increase pressure on the ratings.