ASELSAN’s Credit Rating: AAA and Stable

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ASELSAN’s Credit Rating: AAA and Stable
ASELSAN’s credit evaluation is announced on Public Disclosure Platform. JCR Eurasia Rating affirmed the rating as AAA.

ASELSAN announced Public Disclosure Platform (KAP). The statement gave three indications about the company. The information said, “Our company ASELSAN Elektronik Sanayi ve Ticaret A.Ş. has been evaluated by JCR Eurasia Rating A.Ş. Our Long-Term National Issuer Credit Rating has been affirmed at “AAA (tr)”, Short-Term National Issuer Credit Rating at “J1+ (tr)” and outlook as “Stable”. Our Long Term International Foreign and Local Currency Issuer Credit Ratings and outlooks were assigned as “BB/Negative” as parallel to international ratings and outlooks of Republic of Türkiye.”

ASELSAN TurDef.jpg

The company explained the rating in summary as;
• A strategic position for the country, thanks to its incentivized R&D activities and its ability to develop products that can compete on an international scale, along with its leading position in the sector and its global awareness,
• Satisfactory profitability indicators despite the partial contraction in the 2022 fiscal year,
• The continuing upward trend in the long FX position as well as the contract size of the ongoing projects,
• Trade receivables, mainly from public institutions, support the asset quality,
• High equity contribution fuelled mainly by internal fundraising capacity,
• Advances received at the beginning of the contracts and the project-based business model increase revenue predictability,
• High level of compliance with corporate governance principles,
• Due to the nature of the sector, it is mainly due to long-term and high-amount trade receivables in annual cash cycle time
• Increasing and short-term weighted net debt indicates partial concession from a reasonable liquidity stance despite strong leverage indicators.
• Exposure to operational risks due to operating in an industrial part of international political competition.

Aselsan Rating.pdf

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