Turkiye Finans Katilim Bankasi’s Ratings Affirmed

Turkiye Finans Katilim Bankasi’s Ratings Affirmed

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 Turkiye Finans Katilim Bankasi A.S. (TFKB) at ‘B’ and ‘B’, respectively. At the same time, CI Ratings has affirmed TFKB’s Bank Standalone Rating (BSR) and Core Financial Strength (CFS) rating at ‘b-’ and ‘b+’, respectively, and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR remains Stable.

The affirmation of the ratings balances the Bank’s substantial rise in operating and net profitability, the improved non-performing financing (NPF) ratio and coverage against substantial downside risks to asset quality given prevailing structural imbalances in the Turkish economy. The elevated exposure to government securities and the resulting nexus between the Bank and…