RATINGS - Fitch Assigns Bank Asya's Forthcoming Sukuk Issue 'B+(exp)' Expected Rating

Fitch Ratings-Paris/Istanbul/London-20 October 2011: Fitch Ratings has assigned Asya Katilim Bankasi A.S.'s (Asya) forthcoming sukuk issue a 'B+(exp)' expected rating. The expected rating is in line with Asya's Long-term foreign currency Issuer Default Rating (IDR). The final rating is contingent upon receipt of final documentation conforming to information already received by Fitch. (source)

According to the draft prospectus, a Cayman-based special purpose company (SPV) will issue certificates (or sukuk) and use the proceeds to purchase from Asya, a portfolio of assets, and any subsequent replacing assets, consisting of obligations owed by Asya's customers. All assets will comprise interest-free finance transactions, taking the form of murabaha or lease financing. The SPV will appoint Asya to manage the portfolio of assets on its behalf. Cash flow generated by the assets will be used to service coupon payments due on the sukuk.

Under the terms of a separate guarantee agreement, Asya will guarantee due and punctual payment of the sums payable to the certificate holders.

At maturity, and in accordance with the terms of a purchase agreement, Asya will purchase the portfolio of assets from the SPV at a price equal to the full price of the sukuk. In the event of a dissolution (which includes an event of default) the structure will be unwound to ensure repayment of the sukuk.

Asya's payment obligations under this transaction will rank at least equally with the claims of all its other senior unsecured and unsubordinated creditors.

Fitch rates Asya as follows:
Long-term foreign and local currency IDR: 'B+'; Stable Outlook
Short-term foreign and local currency IDR: 'B'
Viability Rating: 'b+'
Support Rating: '5'
Support Rating Floor: 'NF'
National Long-term rating: 'A-(tur)'; Stable Outlook
Individual Rating: 'D'

Asya was incorporated in 1996 as a financial institution to provide interest-free banking services. 47.5% of its shares are held by 254 different shareholders. These shareholders have other business interests in a wide range of industries, including textiles, shipping, tourism and food. The remaining 52.5% of shares are free-float on the Istanbul Stock Exchange. Asya provides corporate, commercial, SME and retail banking with a focus on larger SMEs and trade finance. Asya is a small player in Turkey's banking sector, with a market share of around 1.5% of assets in Turkey's banking system.

Contact:
Primary Analyst
Janine Dow
Senior Director
+33 (0)1 4429 9138
Fitch France SAS
60 Rue de Monceau
Paris 75008

Secondary Analyst
Levent Topcu
Director
+ 90 212 284 7819

Committee Chairperson
Philip Smith
Senior Director
+ 44 203 530 1091

Media Relations: Michelle James, London, Tel: +44 0203 530 1574, Email: Michelle.James@fitchratings.com.

Additional information is available at www.fitchratings.com.

The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable criteria, 'Global Financial Institutions Rating Criteria' dated August 2011, 'National Ratings Criteria' dated January 2011 and 'Rating Sukuk' dated August 2011 are available at www.fitchratings.com.

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
National Ratings Criteria
Rating Sukuk

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© Press Release 2011 

Source :  http://www.zawya.com/sukuk/story.cfm/sidZAWYA20111112084348/Fitch_Assigns_Bank_Asyas_Forthcoming_Sukuk_Issue_Bexp_Expected_Rating - Nov 12, 2011