TEXT-Fitch rates Bosphorus Financial Services Limited notes at 'BBB+'

Fri Dec 21, 2012 8:06am EST

Dec 21 - Fitch Ratings has assigned Bosphorus Financial Services Limited's (Bosphorus) series of notes final ratings of 'BBB+' with a Stable Outlook as follows:

Series 2012-B notes, USD75,000,000: 'BBB+', Stable Outlook

Series 2012-C notes, EUR50,000,000: 'BBB+', Stable Outlook

Series 2012-D notes, EUR10,000,000: 'BBB+', Stable Outlook

Bosphorus is a securitisation of future diversified payment rights (DPR) denominated in USD, EUR, and GBP and originated by Finansbank A.S. (Finansbank; 'BBB-'/Stable/'F3'. Finansbank is Turkey's eighth-largest bank and although it is 94.8% owned by the National Bank of Greece S.A. (NBG, 'CCC'/'C'), no support is factored in from its parent and contagion risk is viewed as minimal. Finansbank's ratings are therefore driven by its stand-alone viability, reflected in its Viability Rating of 'bbb-'. As with all DPR transactions, the rating is credit-linked to the originator's local currency Issuer Default Rating (IDR) of 'BBB-' via the Going Concern Assessment score (GC score). All series of notes rank pari passu, although each series has a different scheduled maturity date and amortisation profile.

Fitch has analysed the impact of the new issuance using its Future Flow Securitization Rating Criteria. The issuance currently represents the full outstanding DPR programme amount. Given its small size as well as the stability in flows, the agency expects debt service coverage ratios (DSCRs) to remain comfortably above their trigger, even under the stress scenarios commensurate with the notes' ratings. When assigning the rating to the notes Fitch took into account Finansbank's local currency IDR of 'BBB-'/Stable and its GC score of GC3, which reflects its relative importance to the Turkish financial system. Fitch has rated the notes two notches above Finansbank's local currency IDR following the agency's analysis of the GC3 score.

Fitch's new issue report outlining the agency's analysis for the new and existing series is available at www.fitchratings.com.

Link to Fitch Ratings' Report: Bosphorus Financial Services Limited

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