ֳ

Rating Action Commentary

ֳ Rates Fiba's Upcoming Senior USD Notes 'BB-(EXP)'

Tue 24 Oct, 2017 - 6:55 AM ET

ֳ-London-24 October 2017: ֳ has assigned Fibabanka A.S.'s (Fiba) upcoming issue of USD300 million senior unsecured notes an expected long-term rating of 'BB-(EXP)'. The issue is expected to have a five-year tenor.

The final rating is contingent upon the receipt of final documents conforming to information already received.

KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as Fiba's Long-term Foreign-Currency Issuer Default Rating (IDR), as the notes constitute Fiba's direct, unconditional, unsubordinated and unsecured obligations and will rank pari passu among themselves and with all of the bank's other unsubordinated and unsecured obligations. The Long-Term IDR of Fiba is in turn driven by the bank's standalone strength, as reflected in its Viability Rating (VR) of 'bb-'.

Fiba's VR reflects the bank's limited franchise in the Turkish banking sector, small absolute size and rapid growth in recent years. It also reflects Fiba's record of reasonable financial metrics and sound execution.

RATING SENSITIVITIES
Changes to Fiba's VR, which drives the Long-Term IDRs, would impact the issue's rating. Fiba's VR could be downgraded in case of a significant deterioration in asset quality that put pressure on performance and capital ratios. Material strengthening of Fiba's franchise without a sharp increase in risk appetite could result in upside for the bank's VR.

Fiba's other ratings are unaffected by this action, and are as follows:
Long-Term Foreign- and Local-Currency IDRs: 'BB-'; Stable Outlook
Short-Term Foreign- and Local-Currency IDRs: 'B'
National Long-Term Rating: 'A+(tur)'; Stable Outlook
Viability Rating: 'bb-'
Support Rating: '5'
Support Rating Floor: 'No Floor'
Tier 2 capital notes: 'B+'

Contact:

Primary Analyst
Aslan Tavitov
Director
+44 203 530 1788
ֳ Limited
30 North Colonnade
London E14 5GN

Secondary Analyst
Huseyin Sevinc
Associate Director
+ 44 203 530 1027

Committee Chairperson
James Watson
Managing Director
+7 495 956 9901

Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com.

Additional information is available on

Applicable Criteria
Global Bank Rating Criteria (pub. 25 Nov 2016)

Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy


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The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.

Solicitation Status

The ratings above were solicited and assigned or maintained at the request of the rated entity/issuer or a related third party. Any exceptions follow below.

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