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Standalone Creditworthiness Drives Ratings: Fibabanka Anonim Sirketi’s (Fiba) Long-Term (LT) Issuer Default Ratings are driven by its Viability Rating. The ratings reflect its exposure to the challenging Turkish operating environment, above-sector-average profitability, and limited franchise, albeit supported by the expansion of digital banking operations, improved asset quality, only adequate capitalisation, and refinancing risks. Operating Environment Pressures Recede: Fiba’s operations are concentrated in the challenging Turkish operating environment. The shift towards normalisation of the monetary policy has reduced near-term macro-financial stability risks and decreased external financing pressures. Banks remain exposed to high inflation, lira depreciation, slowing growth expectations, and multiple macroprudential regulations, despite recent simplification efforts. Small Franchise, Digital Focus: Fiba has a small franchise (end-9M23: 0.5% of sector assets) and limited pricing power. Nevertheless, the bank has reached 5.2 million customers, reflecting the success of its digital banking channels and, notably, its partnerships with well-known retailers across Turkiye, where it provides instant loans via its application-based channel.