KOCAER ÇELİK SANAYİ VE TİCARET A.Ş.

Capital/Financing Update • Mar 25, 2025

RATING NOTIFICATION

Rating Agency	: :JCR AVRASYA DERECELENDİRME A.Ş.
Rated Company	: :Kocaer Çelik Sanayi ve Ticaret A.Ş.
Address	: Maslak Mahallesi Taşyoncası Sokak No:1/F F2 Blok K :: at:2 34485 Sarıyer, İstanbul- Türkiye
Phone & Fax No	: :0212 352 56 73 – 0212 352 56 75
Date	: :25/03/2025
Subject	: :Article 26 of the CMB Serial VIII, No. 51 Communiqué on Principles

Capital Markets Board of Türkiye (SPK)- To the Accounting Standards Department Central Securities Depository of the Turkish Capital Markets (MKK)– Public Disclosure Platform

JCR Eurasia Rating has evaluated "Kocaer Çelik Sanayi ve Ticaret A.Ş.".

• Ongoing sales volume growth over the last four consecutive years despite a decrease in revenue due to declining unit prices in 2024
• Satisfactory financial leverage profile in reviewed periods
• Moderate equity level over the analyzed years
• Favorable cash flow metrics and adequate liquidity indicators in analyzed periods
• Increasing share of export sales within total revenues and geographical diversification of exports
• Advantages provided by the production of value-added products supported by innovative R&D center and noteworthy focus on sustainability
• Compliance with corporate governance practices as a publicly traded company
• Long-lasting presence and experience in the sector and conformity to the international quality standards
• Contraction in core operational profitability indicators in FY2024
• Net financing expenses pressuring bottom-line profitability and coverage metrics in 2024, despite a decrease in financing expenses
• As actions for a global soft landing gain prominence, decisions with the potential to adversely affect global trade are engendering considerable uncertainty

The Long-Term National Issuer Credit Rating rating of "Kocaer Çelik Sanayi ve Ticaret A.Ş." has been affirmed at 'A+ (tr)' considering the above mentioned issues. All notes of the Company are determined as follows.

:	A+ (tr) / (Stable Outlook)
:	J1+ (tr) / (Stable Outlook)
:	BB / (Stable Outlook)
:	BB / (Stable Outlook)

NOTE: JCR AVRASYA DERECELENDİRME A.Ş. ratings are objective and independent opinions regarding the creditworthiness of a security and/or issuer and should not be considered as a recommendation to buy, hold, sell or lend any security. Unless other wise stated, rating reports are valid for 1 year from the date of publication. The validity date of interim reviews cannot exceed the validit y date of the original report.

Regards, JCR AVRASYA DERECELENDİRME A.Ş.

Şevket GÜLEÇ Executive Vice President

Prof. Dr. Feyzullah YETGİN General Manager

Copyright © 2007 by JCR Eurasia Rating. Maslak Mahallesi Taşyoncası Sokak No: 1 / F F2 Block Floor: 2 34485 Sarıyer / Istanbul / Türkiye Telephone: +90 (212) 352.56.73 Fax: +90 (212) 352.56.75 Unauthorized duplication is prohibited. All rights reserved. All information has been obtained from sources JCR Eurasia Rating believes to be reliable and from information/disclosures provided by the Company. However, JCR Eurasia Rating does not guarantee the accuracy or adequacy of this information. JCR Eurasia Rating's ratings are objective and independent opinions regarding the creditworthiness of a security and its issuer and should not be considered an investment recommendation for the purchase, holding or sale of any security or issue of bonds. Th is rating report has been prepared within the framework of methodologies and internationally accepted rating principles and guid elines registered and approved by the CMB (Capital Markets Board), BRSA (Banking Regulation and Supervision Agency), and is not within the scope of NRSRO (Nationally Recognized Statistical Rat ing Agency) regulations. http://www.jcrer.com.tr