Fitch Ratings has changed the Support Rating of Turkey’s Kocbank to 4 from 5. The Outlook on the Long-Term Foreign and Local Currency Ratings is Positive, while the Outlook on National Rating is Stable, stated a press release.
The agency has affirmed the bank's other ratings at Long-Term Foreign and Local Currency B, Short-Term Foreign and Local Currency B, Individual D and National Long-Term A (tur).
The change in the support rating reflects the joint commitment of UniCredito Italiano (UCI) and Koc Group to provide support to, and contribute to the development of Kocbank and its parent Koc Financial Services (KFS).
In Fitch's opinion, although the propensity of support from the shareholders is high, the probability of support being available to creditors may be limited by the weak financial condition of the Republic of Turkey. Hence, the agency's Support rating is constrained at 4.
Kocbank is 99 percent owned by KFS, which is a 50-50 partnership between UCI, Italy's second largest bank, and Koc Group, the largest conglomerate in Turkey. In May 2002, UCI agreed to take a 50 percent stake in KFS and the transaction closed in October 2002.
Following the corporate reorganization and recapitalization at end-2002, KFS owns banking, leasing, factoring, brokerage and asset management subsidiaries of Koc Group. KFS and Kocbank are jointly controlled by UCI and Koc Group through their equal representation on the board of directors and other governing bodies, while UCI has greater influence over their control functions and risk management. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
