S&P Affirms Albaraka Turk Participation Bank’s Issuer Credit Ratings at ‘B/B’, Negative Outlook

S&P Global Ratings (S&P) has affirmed the ‘B/B’ long- and short-term issuer credit ratings of Turkey-based Albaraka Turk Katilim Bankasi, also known as Albaraka Turk Participation Bank (Albaraka Turk), while maintaining the outlook on the long-term rating as Negative. The rating agency also affirmed the bank’s issue ratings at ‘CCC’ and assessed its stand-alone credit profile at ‘B-‘, according to local media reports.

The rating affirmation balances the expected weakening of the Albaraka Turk’s earnings and capitalisation, due to accelerated lending and rising credit losses, while taking into consideration that the bank has lowered its nonperforming assets. S&P...