Fitch Ratings has downgraded Arçelik’s long-term credit rating from B+ to B, maintaining a negative outlook as the Turkish appliance manufacturer faces continued financial pressure.

The downgrade reflects weaker demand in Turkey and international markets, increased price competition and rising operating costs. These factors have put pressure on profit margins, increased borrowing requirements and weakened the company’s financial position.

Fitch expects Arçelik’s debt levels to remain high, with interest costs continuing to weigh on performance. A slower-than-expected recovery in demand or further pressure on profitability could lead to another downgrade.

Despite the challenges, Fitch recognises Arçelik’s strong position in the European and Turkish white goods markets, supported by established brands including Beko and its wide manufacturing network.

For the appliance industry, the downgrade highlights the difficult trading conditions facing major manufacturers, with weak consumer demand, pricing pressure and high financing costs continuing to affect profitability.