RPT-Fitch Rates Is Faktoring A.S. 'BBB'/Stable

Fri Jun 6, 2014 4:30am EDT

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June 6 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has assigned Turkey's Is Faktoring A.S. (Is Faktoring) Long-term foreign and local currency Issuer Default Ratings (IDR) of 'BBB', Short-term foreign and local currency IDRs of 'F3', a National Long-term rating of 'AAA(tur)' and a Support rating of '2'. The Outlook on all Long-term ratings is Stable.

KEY RATING DRIVERS

Is Faktoring ratings are equalised with those of its parent Turkiye Is Bankasi A.S (Isbank: BBB/Stable), reflecting Fitch's view of Is Faktoring's importance as a core subsidiary to the parent.

Is Faktoring uses its parent branding and bank branch networks to distribute products. Board members are drawn from the bank, as are many senior executives. Credit monitoring systems are aligned with those at the parent bank and several other risk systems are shared.

Is Faktoring is wholly owned by the Isbank Group through Is Finansal Kiralama A.S. (Is Leasing: BBB/Stable) and Turkiye Sinai Kalkinma Bankasi A.S. (TSKB: BBB-/Stable). At end-2013, the top 25 exposures were equivalent to a high proportion (76%) of total lending and were all parent bank clients. At end-3Q13, Is Faktoring was the fourth-largest factoring company in the sector, with a 5.5% market share.

RATING SENSITIVITIES

Is Faktoring's ratings are sensitive to changes in Isbank's IDRs.

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