RATNGS - Moody's assigns (P)Ba1 rating to Turkey's upcoming sovereign sukuk; positive outlook

www.moodys.com -London, 05 September 2012 -- 5 September 2012 -- Moody's Investors Service has assigned a provisional foreign currency rating of (P)Ba1 to Turkey's proposed US dollar-denominated sovereign sukuk. The outlook is positive.
RATINGS RATIONALE
In Moody's opinion, the obligations that would be incurred by the sukuk rank pari passu with other senior, unsecured debt issuances of the Republic of Turkey and therefore carry the same rating. Moody's expects to remove the provisional status of the rating upon the closing of the proposed issuance and a review of its final terms. (source)

CAPITAL MARKETS - Moody’s move whets appetite for sukuk certificates in liras

www.hurriyetdailynews.com -Turkish participation banks are eager to begin issuing lira based sukuk certificates, as Moody’s upgrades Turkey’s sukuk issue outlook to positive with a ‘Ba1’ ratin.

Moody’s upgraded yesterday its outlook for Turkey’s sukuk issue to positive and gave it a “Ba1” rating on the heels of news that the Turkish Treasury had mandated three international banks – Citigroup, HSBC and Liquidity House – to issue “sukuk certificates,” or Islamic banking vehicles.

The new issue is expected to be completed in two weeks as Turkish banks are eagerly waiting for the Turkish Treasury to finalize the process for a Turkish Lira-based sukuk issuing regulation. Deputy Prime Minister Ali Babacan had previously said on several occasions that the Treasury was working to shape the regulation before the end of 2012.  (source)

RATINGS - Moody's upgrade

2012 June 20 Moody's Ratings

RATINGS - Moody's upgrades Turkey's ratings

www.hurriyetdailynews.com - The international rating agency Moody's upgraded Turkey's credit rating Wednesday, maintaining the positive outlook as stable, daily Hürriyet reported.

Turkey's previous Ba2 credit was increased to Ba1, which still defines Turkey as "judged to be speculative and subject to credit risk."   (source)

TURKEY - CAPITAL MARKETS - Disclosure Bank Asya to Istanbul Stock Exchange for sukuk

bankasya.com.tr - 21.10.2011 - International credit ratings agency Moody's Investor Service has determined Bank Asya’s Sukuk Certificates rating as Ba2 and Fitch Ratings has also determined as B + (exp). (source)

20.10.2011 - In order to diversify and increase of Bank Asya's resources from abroad, Citigroup Global Markets Limited and UBS AG has been authorized for Sukuk issuance in international markets maximum term of 5 years up to USD 300 million. In this context, Bank Asya will begin negotiations with investors. (source)

CAPITAL MARKETS - Kuveyt Türk opens Turkey up to Islamic bond market

It has been a groundbreaking week for Islamic finance in Turkey, with Thursday bringing both a $350m benchmark sukuk from Kuveyt Türk Participation Bank, and word that Asya Bank is looking to roadshow its own deal. (source)

CAPITAL MARKETS - RATINGS - Moody's assigns (P)Ba2 rating to Asya Katilim Bankasi's proposed sukuk (Turkey)

zawya.com - The Ba2 rating assigned to the senior sukuk is at the same level as the global local-currency (GLC) deposit rating already assigned to BankAsya, as ultimately all the payment obligations within the structure remain with BankAsya. (source)

EVENTS - IFSB Istanbul April 6, 2011 - In search for a global standard in Islamic banking

Islamic banking is growing rapidly in the aftermath of the global financial crisis, but it desperately needs a global set of standards that every country and institution accepts. Speaking to the Hürriyet Daily News in Istanbul, an expert says the Turkish Central Bank might ‘take the lead’ in this effort. ‘Risk has no religion,’ says Khalid Ferdaus Howladar of Moody’s, adding that he likes the Turkish term ‘participation bank’.

 

Khalid Ferdaus Howladar of Moody's (third from L) is seen on stage with other officials including Turkish Central Bank Gov. Durmuş Yılmaz (third from R) in Istanbul during the 'Seminar on Managing Liquidity In The Islamic Financial Services Industry' held April 6, 2011. AA photo

Turkey may not be ready to take a prominent place in the world of Islamic finance due to the ongoing political tension on religion’s role in the society, but an expert says Islamic finance needs input from the nation on how to proceed.

Noting the often-contradictory interpretations of the principles of Islamic banking, Khalid Ferdaus Howladar, the vice president and senior credit officer of Moody’s in the Middle East, suggested that the Turkish Central Bank might “take the lead” in establishing a global standard that would help Islamic banking become more transparent. (full story)

FINANCE - Moody’s increases Turkey’s rating outlook to positive

International credit rating agency Moody's Investors Service has increased the outlook of Turkey's Ba2 local and foreign currency bond rating to positive from stable.

The company cited improvements in Turkey's economy and debt management as the reasons behind its move. “Turkey's economy has proven to be unexpectedly robust and has recovered to pre-crisis levels,” said Sarah Carlson, Moody's vice president-senior analyst and lead sovereign analyst for Turkey, in an e-mailed report on Tuesday, underlining that the country's budget deficit and debt stock have improved beyond targets in the government's medium-term economic program.

SUKUK - Sovereign Islamic bonds from Asia to the Persian Gulf are beating returns on corporate sukuk for the first time in three months as accelerating economic growth and rising oil revenue shore up state finances

Sovereign Islamic bonds from Asia to the Persian Gulf are beating returns on corporate sukuk for the first time in three months as accelerating economic growth and rising oil revenue shore up state finances.

Government debt that complies with the religion’s ban on interest gained 1.7 percent so far this month, according to the HSBC/NASDAQ Dubai Sovereign US Dollar Sukuk Index, more than the 1.1 percent advance in bonds issued by companies.