Turkey’s Emlak Katilim’s LTFC IDR Affirmed at B with a Stable Outlook: Fitch Ratings

Turkiye Emlak Katilim Bankasi A.S. (Emlak Katilim)’s Long-Term Foreign Currency (LTFC) Issuer Default Rating (IDR) has been affirmed at B with a Stable Outlook by Fitch Ratings (Fitch).

Ratings Rationale

The rating reflects potential support from the Government of Turkey, if needed, given the 100% state-ownership, in addition to the strategic importance of Islamic banking in Turkey. There is also a proven track record of capital support from the Government.

Liquidity and funding risks are higher, given the replacement of the Turkish Central Bank governor in March 2021 and the subsequent damage to monetary policy credibility and investor sentiment. In addition, prevailing uncertainty over the pandemic, particularly in lieu of the latest...