Fitch Puts Pamuk-Bank's 2003 FRC & YKB'S 2003 FRN On Rating Watch Negative.Business Editors LONDON--(BUSINESS WIRE)--June 21, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has placed the 'BBB-' (BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. minus) rating of Pamuk Bank's $45 million FRC FRC abbr. functional residual capacity FRC see functional residual capacity. due 2003 issued via Pamuk 2000-A Remittances Trust on Rating Watch Negative. The agency has also placed the 'BBB-' (BBB minus) rating of Yapi Kredi Bank's $115 million FRN FRN See: Floating-rate note due 2003 and $5 million fixed rate note due 2003 issued via Yapi Kredi Securitisation Company Series 1998-A on Rating Watch Negative. The first rating action reflect the recent announcement that Pamukbank (Pamuk) has been taken over by the Savings Deposit Insurance Fund (SDIF SDIF SGML Document Interchange Format SDIF Saving Deposit Insurance Fund (Turkey) SDIF Sony Digital Interface Format SDIF Standard Document Interchange Format SDIF Sequential Difference SDIF Sound Description Interface Format ) after an audit of Pamuk revealed a capital deficiency. Turkey's Banking Regulatory and Supervisory Board Supervisory board The board of directors that represents stakeholders in the governance of the corporation. (BRSB) have indicated the bank will continue to operate while under the control of the SDIF. Fitch will monitor the transaction on a daily basis. Today, the agency has received confirmation from the trustee, the Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , that the certificates will be subject to early amortisation and mandatory redemption by July 10, 2002. As of June 20, 2002 all the bank's collected cashflows are being trapped. The second rating action reflects the fact that Yapi ve Kredi's Individual and National ratings were placed on Rating Watch Negative on June 19, 2002 following the rejection by the Turkish regulatory authorities of Yapi ve Kredi's planned merger with Pamuk (its sister bank). Yapi ve Kredi has not yet announced its 2001 financials due to the lengthy audit process that all Turkish banks are currently undertaking as part of a regulatory review of the banking system. Fitch expects these figures to be available shortly and will resolve its Rating Watch on the bank's ratings (and thus the notes' ratings) when the bank's financial condition is fully understood. Another key factor will be the health of its majority shareholder the Cukurova Group and the extent of Yapi ve Kredi's lending to companies within the group. |
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