Turkey: Fitch maintains rating watch negative status on Anadolu Efes’ local currency rating

In its press release, dated 17.02.2006, the international rating agency Fitch Ratings (“Fitch”) has announced that it has maintained the ‘BBB-‘ (BBB minus) Local Currency IDR of Anadolu Efes Biracilik ve Malt Sanayii A.S (“Anadolu Efes”) on Rating Watch Negative.

Fitch stated that the negative outlook is maintained until the means of refinancing of the Anadolu Efes guaranteed USD 500 million bridge facility, granted by Citibank N.V. and HSBC Bank plc to Efes Breweries International ("EBI"), a 70% subsidiary, on a longer term basis is certain.

Fitch also stated in its release the likelihood of downgrading its Local Currency IDR of Anadolu Efes by one notch, should the funding of the bridge facility be jointly borne by EBI and Anadolu Efes, either directly or indirectly via a guarantee of Anadolu Efes for EBI’s financial debt.

Fitch also noted that Anadolu Efes’ International Foreign Currency IDR, currently at ‘BB-‘ (BB minus) with a Positive Outlook will be unaffected even under a joint funding scenario.

The subject bridge facility in the amount of USD 500 million is intended to be invested in EBI’s organic and inorganic growth plans, including the funding of the purchase of the Russian based Krasny Vostok Brewing Group shares about which EBI recently disclosed its intention by its entry into a Share Purchase Agreement.

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