Fitch rating actions on two Turkish participation banks

Fitch Ratings has upgraded Turkey-based Asya Katilim Bankasi A.S.'s (Bank Asya) Long-term Foreign Currency and Local Currency Issuer Default Ratings (LT IDRs) to 'B+' from 'B' and Kuveyt Turk Katilim Bankasi A.S's (Kuveyt Turk) Long-term Local Currency IDR to 'BBB' from 'BBB-'.
The upgrade reflects Bank Asya's reasonable performance in an improving operating environment, the bank's diversified deposit base and low exposure to market risk. However, the ratings also reflect the loan portfolio's concentration in the construction sector and large borrowers and potential asset quality risks due to rapid loan growth.

You may also like...