Fitch Ratings Affirms B/Stable Rating of Vakif Katilim Bankasi (Vakif Katilim)

Fitch Ratings (Fitch) has affirmed Vakif Katilim (the Bank)’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The Viability Rating (VR) of the Bank has also been affirmed at 'b'.

Ratings Rationale

Vakif Katilim's 'B' LTFC IDR is supported by its independent creditworthiness as expressed by its VR, and potential Government support.

The VR is indicative of Vakif Katilim's growing participation banking franchise as well as its reasonable financial profile, despite its fairly short period of operation, developing risk framework, rapid growth in the volatile Turkish market, in addition to asset quality and seasoning risks. This is balanced by significant realised and additional budgeted capital incr...