S&P Global has downgraded Arçelik's credit rating.

Foreks - S&P Global has downgraded Arçelik's (IS:ARCLK) long-term issuer credit rating from "BB" to "BB-" and its senior unsecured debt rating from "BB" to "B+". The statement from S&P Global noted that Arçelik's profitability has deteriorated due to a larger-than-expected dilutive effect from the recent acquisition of Whirlpool Europe, high personnel costs, and price pressures from intense competition in Europe. Consequently, the company is projected to achieve an EBITDA margin of 3.9% in 2024, down from 6.7% in 2023.

The report highlighted that the company's reliance on an expensive local currency for short-term financing puts pressure on its ability to meet interest payments. S&P expects the EBITDA interest coverage ratio to remain between 1.0x and 1.5x in 2025 and 2026. The credit rating outlook has been determined as "stable."