Fitch Ratings assigns Turkiye Finans Katilim Bankasi A.S.'s certificates 'BBB-(EXP)'.
London: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, assigned Turkiye Finans Katilim Bankasi A.S.'s (Turkiye Finans) proposed US dollar-denominated sukuk certificates, to be issued by TF Varlik Kiralama A.S. (TFVK), an expected 'BBB-(EXP)' rating.
The expected rating is in line with Turkiye Finans's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'BBB-'. The assignment of the final rating is contingent upon receipt of final documents conforming to information already received by Fitch.
TFVK's ongoing activities will principally be the issue of lease certificates (including the sukuk certificates). TFVK is wholly owned by Turkiye Finans. TFVK is the issuer and certificate holders' agent in respect of the sukuk. TFVK is incorporated in accordance with the laws of, and formed and registered in, Turkey as an asset leasing company.
The certificate's rating is driven solely by Turkiye Finans's IDR of 'BBB-'. This reflects Fitch's view that default on these unsecured unsubordinated obligations would reflect the default of Turkiye Finans in accordance with Fitch's rating definitions. Fitch has not considered any underlying assets or collateral provided, as we believe that the issuer's ability to satisfy payments due on the certificates will ultimately depend on Turkiye Finans satisfying its unsecured payment obligations to the issuer under the transaction documents described in the prospectus and other supplementary documents.