Albaraka Türk’s Ratings Affirmed with a Stable Outlook

Albaraka Türk’s Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Albaraka Türk Katılım Bankası A.Ş. (ATKB) at ‘B-’ and ‘B’, respectively. At the same time, CI Ratings has affirmed ATKB’s Bank Standalone Rating (BSR) and Core Financial Strength (CFS) rating at ‘b-’ and ‘b-’, respectively. The Outlook for the LT FCR and BSR remains Stable.

The affirmation of ATKB’s LT FCR and BSR balances the improved operating and net profitability, the equity increase and higher financing loss provisions against large single-borrower and sector concentrations, elevated sovereign exposure, and a difficult operating environment.

ATKB’s BSR is derived from a CFS rating of ‘b’, reflecting the Bank’s weak financial, operational, and business strength,…