Fitch downgrades Albaraka Turk to ‘B+’

The downgrade reflects Fitch's revised view of potential support from its majority shareholder, Bahrain-based Albaraka Banking Group (ABG). While Fitch believes ABG has a strong propensity to support, its ability to do so cannot be relied upon, given its structure as a group of diversified subsidiaries spread across different sub-investment grade countries and Albaraka Turk's large size relative to the group.
The 'B+' Long-term IDR reflects the bank's small size and concentration risks in its loan book, particularly in construction sector lending.

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