/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/240923.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, September 23, 2024, Vol. 25, No. 191 Headlines F R A N C E FLAMINGO LUX II: Moody's Cuts CFR & Senior Secured Term Loan to B3 HESTIAFLOOR 2: Fitch Affirms 'B' LongTerm IDR, Outlook Positive I R E L A N D CASTLELAKE AVIATION: Moody's Puts 'Ba3' CFR on Review for Upgrade SIGNAL HARMONIC III: Fitch Assigns 'B-sf' Final Rating on F-2 Notes N E T H E R L A N D S DYNAMO MIDCO: Fitch Assigns 'B(EXP)' LongTerm IDR, Outlook Positive NOBIAN FINANCE: Moody's Rates New Extended Secured Term Loan 'B2' P O L A N D BANK MILLENNIUM: Fitch Gives BB+(EXP) Rating on Non-Preferred Bonds T U R K E Y ALTERNATIFBANK AS: Fitch Hikes LongTerm Foreign Currency IDR to BB- BURGAN BANK: Fitch Hikes LongTerm Foreign Currency IDR to 'BB-' ING BANK: Fitch Gives 'B+(EXP)' Rating on Tier 2 Notes TURK EKONOMI: Fitch Assigns CCC+ Rating on USD300MM Tier 1 Notes TURK P&I: Fitch Hikes Insurer Fin. Strength Rating to 'BB-' TURKLAND BANK: Fitch Affirms 'B' IDRs, Off Watch Negative [*] Fitch Hikes 3 Turkish Non-Bank Fin. Institutions to 'BB-' IDR [*] Fitch Hikes IDRs on 11 Turkish Non-Bank Entities to 'BB-' [*] Fitch Upgrades 24 Turkish Banks on Sovereign Upgrade U K R A I N E [*] Fitch Hikes 8 Ukrainian LRGs to CCC on Sovereign Rating Action U N I T E D K I N G D O M BRICK LIVE: ReSolve Advisory Named as Administrators FABLINK GROUP: Interpath Ltd Named as Joint Administrators FABLINK UK: Interpath Ltd Named as Joint Administrators GLENEVIN LTD: RSM UK Named as Administrators X X X X X X X X [*] BOND PRICING: For the Week September 16 to 20, 2024 - - - - - =========== F R A N C E =========== FLAMINGO LUX II: Moody's Cuts CFR & Senior Secured Term Loan to B3 ------------------------------------------------------------------ Moody's Ratings has downgraded the long-term corporate family rating of Flamingo Lux II SCA ("EMERIA" or "the company") to B3 from B2, probability of default rating to B3-PD from B2-PD, and the instrument rating on the EUR250 million senior unsecured notes to Caa2 from Caa1. Concurrently, the instrument ratings on the two EUR400 million backed senior secured notes, EUR1,275 senior secured term loan B, EUR788 million senior secured term loan B2, and EUR437.5 million senior secured first lien revolver credit facility (RCF), all issued by EMERIA, have been downgraded to B3 from B2. The outlook of both entities remains negative. RATINGS RATIONALE The downgrade of EMERIA's CFR to B3 reflects a delayed deleveraging path and negative free cash flow generation. Moody's-adjusted leverage, estimated at approximately 11x for the last twelve months ending June 2024 which is expected to decline to around 10x by the end of 2024 remains outside the requirements for the B3 rating category. Despite the company's commitment to significantly reduce leverage and enhance cash flow generation, operating earnings continue to be pressured by higher non-recurring expenses associated with restructuring and transformation efforts and muted activity of the B2C Sales business as of end of June 2024. Additionally, the considerable interest expense on a substantial debt load has resulted in negative Moody's-adjusted free cash flow since 2022, which Moody's anticipate will persist through 2024. The B3 rating is underpinned by EMERIA's strong market leadership in France and the UK, coupled with a growing presence in neighbouring countries such as Germany, Belgium, and Switzerland, thereby mitigating geographical concentration in France. The rating also reflects EMERIA's substantial recurring revenue base derived from stable residential property management activities and its solid historical track record of scaling operations while enhancing operating margins. RATIONALE OF THE OUTLOOK The negative rating outlook reflects Moody's expectation that EMERIA's leverage will remain elevated, even for the B3 rating category, and is highly sensitive to financial policy and capital allocation decisions. Execution risks associated with the substantial reduction of integration and restructuring costs, which are necessary to achieve sustainably positive free cash flow (FCF), are exerting downward pressure on the rating. Nevertheless, Moody's anticipate that the company's restructuring and transformation initiatives, combined with a reduction in merger and acquisition (M&A) activity, will support deleveraging towards 8x over the next 12 to 18 months. During this period, Moody's expect the interest coverage ratio, expressed as EBITA/Interest expense, to improve to around 1.5x. Earnings and cash flow generation will benefit from moderate organic growth in EMERIA's core markets and a gradual improvement in the market conditions for both its stock and brokerage businesses. The negative outlook further reflects the limited headroom within the current rating category to accommodate underperformance, continued negative free cash flow generation, or additional debt-financed acquisitions that could weaken liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward rating pressure is unlikely considering the negative outlook, but could develop in case of: -- Sustained positive FCF generation with Moody's adjusted FCF/Debt increasing towards 5% -- Moody's adjusted debt/EBITDA declining below 6x -- Moody's adjusted EBITA/Interest improves towards 2x -- Sustained earnings growth and material reduction in non-recurring operating expenses -- Good liquidity, including the timely addressing of debt maturities Downgrade rating pressure could develop if: -- Negative Moody's-adjusted FCF persists or liquidity deteriorates further -- Company fails to materially reduce non-recurring costs or engages in debt-funded acquisitions -- Moody's adjusted debt/EBITDA remains above 8x -- Moody's adjusted EBITA/Interest remains below 1.5x ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Governance considerations were among the primary drivers of the rating action and reflect the company's aggressive financial policy which is tolerant of large debt-funded M&A and consecutive high leverage. It also reflects its earnings and cash flow sensitivity to a successful integration of acquired companies. At the same time Moody's understand that the management and shareholders continue committed to leverage reduction though no debt-funded M&A and disciplined capital allocation. In addition, the company is undertaking several restructuring measures to improve operational efficiency in Germany and Switzerland, which together with the completion of the transformation activities should gradually improve earnings and cash flow generation. LIQUIDITY EMERIA's liquidity is adequate based on the expectation that negative free cash flow generation will be turned around. EMERIA's liquidity is characterized by EUR7.2 million available cash (excluding bank overdraft), EUR19.6 million undrawn bank overdraft, and EUR97.5 million undrawn revolving credit facility as of June 2024. The company's cash generation is highly seasonal, with 70% occurring in the second half the year (out of which 40% in the last quarter). This seasonality, combined with low earnings, has led to significant debt drawings (EUR100 million term loan B2 in March 2024 and EUR108 million RCF through H1 2024), resulting in high interest expenses and continued negative Moody's adjusted free cash flow of -EUR158.6 million as of LTM June-24. In the next 12-18 months, Moody's expect EMERIA to steadily reduce non-recurring expenses and continue benefitting from the savings from the deployment of Agency of the Future, which will be completed by the end of H1 2025. Moody's expect the latter to help improve EBITDA and allow for partial repayment of RCF drawings and lower interest expenses. A disciplined capex spending, will likely allow the company to generate positive free cash flow by end of 2025. Further Moody's expect the company to refrain from debt-funded M&A activities. The company has no significant debt maturities prior to September 2027, when the drawn RCF matures, followed by EUR2,063 million senior secured term loan B, EUR800 million senior secured notes (issued by EMERIA) coming due in March 2028, and EUR250 million senior unsecured notes (issued by Flamingo Lux II SCA) coming due in March 2029. Moody's expect the company to maintain adequate headroom under its springing covenant on the revolving credit facility in combination with a timely addressing of debt maturities. STRUCTURAL CONSIDERATIONS The senior secured debt instruments are rated B3, at the same level as the CFR, reflecting their pari passu ranking and the comparatively small amount of junior debt ranking below them. Conversely, the senior unsecured notes are rated Caa2 because of the comparatively high amount of debt ranking ahead of them in the capital structure. The senior secured bank credit facilities benefit from a security package comprising share pledges of material subsidiaries, assignment of intercompany receivables, and pledges over certain bank accounts. The senior secured bank credit facilities also benefit from upstream guarantees from most operating subsidiaries. The senior unsecured notes benefit from the same upstream guarantees as the senior secured debt, but on a second ranking basis. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. CORPORATE PROFILE Headquartered in France, EMERIA is a leading provider of residential real estate services through a network of 700 branches in seven countries. The company, which is owned by a consortium led by the private equity fund Partners Group since 2016, generated revenue of EUR1.5 billion (EUR1.5 billion proforma closed and post-period acquisitions and synergies) and company adjusted EBITDA of EUR389 million (EUR458 million proforma closed and post-period acquisitions and synergies) for the 12 months that ended in June 2024. HESTIAFLOOR 2: Fitch Affirms 'B' LongTerm IDR, Outlook Positive --------------------------------------------------------------- Fitch Ratings has affirmed Hestiafloor 2's (Gerflor)'s Long-Term Issuer Default Rating (IDR) at 'B' with a Positive Outlook following the announcement of an expected amendment and extension (A&E) of its existing EUR900 million senior secured term loan B (TLB) and EUR210 million revolving credit facility (RCF). Fitch has assigned the A&E of the TLB a 'B+(EXP)' expected rating with a Recovery Rating of 'RR3'. The aim of the A&E is to extend the maturity of the TLB by three years. The assignment of a final rating is contingent on the completion of the A&E transaction and the receipt of final documents conforming to information already received. The IDR balances Gerflor's high leverage with a solid business profile and sound profitability. The group has recently improved its leverage profile, resulting in greater rating headroom. Fitch expects continued improving operating profitability, which combined with the net shareholder equity injection in 2023, will help the group reduce its EBITDA gross leverage to around 5.5x by end-2025. This is underlined in the Positive Outlook. Its operating profitability improvement will be supported by the group's end-market diversification and focus on the more resilient renovation end-market with limited exposure to the softer residential and office end-markets. Key Rating Drivers Leverage High but Decreasing: The rating remains constrained by high leverage and expected modest deleveraging over the next four years. Fitch forecasts Fitch-defined EBITDA leverage of 5.7x at end-2024, 5.5x at end-2025 and about 5x at end-2027, driven by mid-single digit revenue growth and a modest increase in EBITDA margins. Fitch assumes that positive free cash flows (FCF) in 2024-2027 will be mainly used for continued bolt-on acquisitions. Shareholder net equity injection of about EUR75 million in 2023 provided further funds for acquisitions and helped Gerflor repay its revolving credit facility (RCF) drawdown. Resilient Operating Profitability: Fitch expects continued resilient operating profitability to be supported by the group's sound end-market diversification and its focus on the more resilient renovation end-market. It has limited exposure to the weaker residential and office end-markets but meaningful exposure to stable commercial end-markets such as education, healthcare and transport. Fitch expect continued normalisation of raw material and transportation costs versus 2022. Profitability will be further supported by contribution from new bolt-on acquisitions and new product launches. Through-the-Cycle Positive FCF: Fitch expects positive FCF margins of about 2%-3% annually in 2024-2027. Fitch expects increasing operating profitability to be partly offset by continued high interest costs, large growth capex and working-capital investments to support Gerflor's revenue growth. Continued Acquisitive Strategy: Fitch expects Gerflor to continue its M&A-driven growth strategy, with total net acquisitions of about EUR40 million assumed a year over 2024-2027. Fitch expects acquisitions to be moderate in size and mostly financed by internally generated cash flows. The group has a successful integration record and policy of acquiring companies with a clear strategic fit at sound valuations. The M&A pipeline, deal parameters and post-merger integration remain important rating drivers. Derivation Summary Gerflor has a leading market position in its resilient niche flooring segment and is larger than building product peers, such as Terreal Holding SAS or PCF GmbH (CCC+) and similar in size to Victoria PLC (B+/Stable). It is much smaller than Mohawk Industries, Inc. (BBB+/Stable) and slightly smaller than Tarkett Participation (B+/Stable). Gerflor has better geographical diversification than Victoria, although both have a fairly high exposure to Europe, while Tarkett is more geographically diversified. Like most building-product companies, Gerflor has limited product differentiation but has developed innovative product solutions, enabling it to cater to a wide range of end-customers. Gerflor's distribution channels result in a strong exposure to renovation or refurbishment construction activities (estimated at 75%-80% of revenue), similar to that of Tarkett. Gerflor's EBITDA margins (around 13%) are stronger than those of higher-rated peers Tarkett (5%-7%) and Victoria (11%-12%). Gerflor's leverage profile is weaker and Fitch expects EBITDA gross leverage of 5.6x-5.2x in 2024-2026 compared with 4.6x-4.1x for Tarkett over the same period. Key Assumptions - Mid-single digit annual revenue growth in 2024-2027, supporting broadly stable Fitch-defined EBITDA margin at around 13% - Capex at 3.7% of revenue in 2024 and 4% annually in 2025-2027 - Working-capital requirement of about 0.9%-1.0% of revenue in 2024-2027 - New M&As of around EUR40 million annually in 2024-2027 Recovery Analysis The recovery analysis assumes that Gerflor would be reorganised as a going concern in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Factoring line and other credit facilities rank super senior. Its going-concern EBITDA estimate of EUR140 million reflects Gerflor's most recent acquisitions and its view of a sustainable, post-reorganisation EBITDA on which Fitch bases its valuation. In this scenario Gerflor would generate neutral-to-negative FCF. Fitch uses an enterprise value multiple of 5.5x to calculate a post-reorganisation valuation. It reflects Gerflor's leading position in its niche markets (such as sport and transport), long-term relationship with blue-chip clients and a loyal customer base due to its direct distribution channel. Based on the upcoming A&E transaction, its waterfall analysis generates a ranked recovery for the senior secured debt (new EUR900 million term loan B and EUR210 million RCF) in the 'RR3' category, leading to a 'B+(EXP)' rating for the proposed EUR900 million TLB. The waterfall-generated recovery computation output percentage is 52%. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Application of conservative financial policy with EBITDA gross leverage below 5.5x - Higher operating margin leading to FCF margins in mid-single digits - Greater diversification across segments or geographies Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 7.0x - EBITDA interest coverage below 2.5x - EBITDA margins below 12% - Neutral-to-negative FCF margins Liquidity and Debt Structure Comfortable Liquidity: At end-July 2024, Gerflor had around EUR61 million of Fitch-adjusted cash balance (excluding about EUR14 million restricted for intra-year working capital swings) and access to an undrawn EUR190 million of its EUR210 million RCF due 2026, which will be extended to 2029 as part of the A&E. Fitch forecasts that positive FCF in 2024-2027 will be mainly used for bolt-on acquisitions. The group's debt structure is dominated by its EUR900 million TLB due 2027, which will be extended to 2030 after the completion of the A&E. Issuer Profile France-based Gerflor specialises in resilient flooring (vinyl and linoleum) and walls & finishes solutions that are primarily sold to commercial customers. Operations span primarily across European countries as well as the Americas and Asia Pacific. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Hestiafloor 2 LT IDR B Affirmed B senior secured LT B+(EXP)Expected Rating RR3 senior secured LT B+ Affirmed RR3 B+ ============= I R E L A N D ============= CASTLELAKE AVIATION: Moody's Puts 'Ba3' CFR on Review for Upgrade ----------------------------------------------------------------- Moody's Ratings has placed the ratings of Castlelake Aviation Finance DAC on review for upgrade, including its Ba3 corporate family rating and B2 backed senior unsecured rating. Moody's have also placed the Ba3 backed senior secured first lien term loan ratings of Castlelake Aviation One DAC, a wholly-owned subsidiary of Castlelake Aviation Finance DAC, on review for upgrade. Previously the outlook for both entities was stable. This rating action follows the announcement that Avolon Holdings Limited (Avolon, Baa3 stable) has entered into a definitive agreement to acquire Castlelake Aviation Finance DAC. The review is unlikely to conclude until after the deal has received regulatory approvals and the transaction closes, which is expected to occur in the first quarter of 2025, subject to regulatory review and customary closing conditions. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review for upgrade is based upon Moody's view that, should the acquisition by Avolon be completed, Castlelake Aviation Finance DAC will become part of an enterprise with a significantly stronger credit profile than if Castlelake Aviation Finance DAC remains a standalone entity. Castlelake Aviation Finance DAC's existing Ba3 corporate family rating (CFR) reflects Moody's expectation of the company's improving profitability and solid equity capitalization, as well as its high customer concentration and primary reliance on secured debt for funding. About three-quarters of Castlelake Aviation Finance DAC's fleet is comprised of fuel-efficient narrow-body aircraft, which are typically used in domestic travel and tend to be more resilient during economic downturns. The company's profitability, as measured by net income-to-average managed assets, was robust at 1.8% as of June 30, 2024, as the operating environment, partially attributable to the shortage of aircraft, remains favorable. Moody's expect to upgrade the ratings once the transaction closes. Given the review for upgrade, a downgrade of the ratings is unlikely. However, if the transaction does not close, the ratings could be downgraded if Castlelake Aviation Finance DAC suffers from a deterioration in earnings such that profitability (as measured by net income/total assets) is sustained below 1%, if it loses a key customer relationship, if its overall liquidity declines, or if it disposes of aircraft assets on unfavorable terms. Incorporated in Ireland, Castlelake Aviation Finance DAC is an aircraft lessor owned by funds and accounts managed by Castlelake L.P. As of June 30, 2024, the company had 118 aviation assets, eight of which are used for secured loans made to aviation companies, and total assets of $4.9 billion. Castlelake L.P. is a global alternative investment firm with 250 aircraft and total assets under management of $24 billion as of June 30, 2024. The principal methodology used in these ratings was Finance Companies published in July 2024. SIGNAL HARMONIC III: Fitch Assigns 'B-sf' Final Rating on F-2 Notes ------------------------------------------------------------------- Fitch Ratings has assigned Signal Harmonic CLO III DAC final ratings Entity/Debt Rating ----------- ------ Signal Harmonic CLO III DAC A Loan LT AAAsf New Rating A XS2870215261 LT AAAsf New Rating B XS2870215428 LT AAsf New Rating C XS2870215691 LT Asf New Rating D XS2870216079 LT BBB-sf New Rating E XS2870216152 LT BB-sf New Rating F-1 XS2873297415 LT B+sf New Rating F-2 XS2873300813 LT B-sf New Rating Subordinated Notes XS2870216582 LT NRsf New Rating Transaction Summary Signal Harmonic CLO III DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Signal Harmonic Limited and Signal Capital Partners Limited and the CLO has an approximately five-year reinvestment period and a nine-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors to be in the 'B' category. The Fitch weighted average rating factor (WARF) of the identified portfolio is 24. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 63.1%. Diversified Portfolio (Positive): It has various concentration limits, including the maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has four matrices. Two are effective at closing with fixed-rate limits of 5% and 7.5% and there are two forward matrices that could be elected one year after closing, with fixed-rate limits of 5% and 7.5%. All four matrices are based on a top 10 obligor concentration limit of 20%. The transaction has a reinvestment period of about five years and include reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction stress portfolio is reduced by 12 months from the WAL covenant. This reduction to the risk horizon accounts for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include, among others, passing both the coverage tests and the Fitch CCC test post-reinvestment as well as a WAL covenant that gradually steps down over time. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase in the mean default rate (RDR) across all the ratings and a 25% decrease in the recovery rate (RRR) across all the ratings of the identified portfolio would lead to downgrades of no more than one notch for the class B and D and have no impact on the class A, C, E, F-1 and F-2 notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Owing to the fact the identified portfolio has better metrics and a shorter life than the Fitch-stressed portfolio the class C, F-1 and F-2 notes display a rating cushion of three notches, the class B, D and E notes two notches, and the class A notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase in the mean RDR across all the ratings and a 25% decrease in the RRR across all the ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches for class A to D notes and to below 'B-sf' for the class E, F-1 and F-2 notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction in the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to four notches, except for the 'AAAsf' notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur if there is better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread being available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Signal Harmonic CLO III DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ===================== N E T H E R L A N D S ===================== DYNAMO MIDCO: Fitch Assigns 'B(EXP)' LongTerm IDR, Outlook Positive ------------------------------------------------------------------- Fitch Ratings has assigned Dynamo Midco B.V. (Innomotics) an expected Long-Term Issuer Default Rating (IDR) of 'B(EXP)' with a Positive Outlook. Fitch has also assigned the proposed notes and term loans of Dynamo Newco II GmbH and Dynamo US Bidco Inc. an expected senior secured rating of 'B+(EXP)' with a Recovery Rating of 'RR3'. The IDR is constrained by historically low profit margins, high EBITDA leverage post-notes issue and volatile free cash flow (FCF) in the short term. Rating strengths are Innomotics' robust business profile with a leading market position in the low & high voltage motors (LVMs and HVMs) and medium voltage drives (MVDs), innovative products, product diversification as well as revenues from services and aftermarket. Fitch expects Innomotics to improve its profitability on cost optimisation and following the expiry of legacy contracts in HVMs that are associated with lower profitability. This will help to improve free cash flow (FCF) and reduce leverage, thereby driving the Positive Outlook. The assignment of final ratings is contingent on completing the transaction in line with the terms already presented. Key Rating Drivers High Leverage Metrics to Improve: Fitch expects high post-transaction consolidated EBITDA leverage to decrease to around 5x by 2027, which is below the positive sensitivity for the rating. This is also supported by the company's stated aim to deleverage. Fitch also expects stronger interest coverage, driven by healthy EBITDA growth on a broadly stable debt quantum. Fitch views the proposed diversified financing and its long-term maturity profile as supportive of the ratings. Strategic Actions Drive Profitability: Fitch forecasts EBITDA margin to improve to about 11% by 2027 from 8% in 2023 on efficiency measures, a new pricing strategy and as onerous contracts phase out. Fitch anticipates the positive impact of various cost-reduction measures to be realised by end-2025, following the elimination of fixed-cost contracts, updated pricing especially in HVMs and MVDs and an increasing order backlog. All this should help drive profitability closer to some of its competitors'. Volatile FCF To Strengthen: Fitch expects the temporary pressure on FCF to subside in 2026 with FCF turning neutral to positive. Increased interest payments and capex are causing slightly negative FCF in 2025, despite neutral-to-positive working-capital fluctuations due to improved inventory management. The higher interest expense is a result of the company's new capital structure, while investments are aimed at supporting sales growth and maintaining Innomotics' competitive advantage in innovative product customisation through LVM automation. Healthy Liquidity Headroom: Fitch anticipates satisfactory liquidity in the medium term to provide financial flexibility for Innomotics, which Fitch views as a credit strength. Its liquidity buffer consists of EUR150 million post-transaction Fitch-adjusted readily available cash and a proposed undrawn revolving credit facility (RCF). Its short-term maturity is only the company's prospective factoring facility post-notes issue. Robust Business Profile: Innomotics' market-leading position and its reasonable geographic and end-market diversification are a credit strength. Around 80% of its 2023 revenue stemmed from overseas, including 19% from China and 22% from the Americas, across over 13 end-markets, such as minerals, chemicals and metals. Its product offering is firmly positioned to serve the global trend of combustion engines transitioning to electrical, new energy applications and to meet the demands of urbanisation. Innomotics' ability to offer bespoke products reinforces its competitive edge and brand reputation. Derivation Summary Innomotics' business profile (annual revenue over EUR3,000 million) is among the strongest within its peer group, ranking above Innio Group Holding GmbH (B/Positive), Flender International GmbH (B/Stable) and Ahlstrom Holding 3 Oy (B+/Stable). This is further supported by its reasonable geographic diversification, with 79% of its revenue generated outside Germany, and continuous product expansion, similar to higher-rated peers such as Ahlstrom and Regal Rexnord Corporation (BBB-/Stable). Innomotics' limited diversification of its customer portfolio, with the top 15 customers accounting for about 30% of order intake, in comparison to Ahlstrom, results in the one-notch difference, albeit partly offset by its longstanding relationships. Innomotics' market-leading position as a specialist manufacturer underpins its through-the-cycle EBITDA and EBIT margins of 10.4% and 8.3% respectively. These are similar to other 'B' rated diversified industrial companies such as Flender and Project Grand Bidco (UK) Limited (B+(EXP)/Stable), albeit weaker than Innio's and TK Elevator Holdco GmbH's (B/Stable). However, its strong profitability is offset by weaker FCF margins than Project's, which Fitch expects to remain neutral until 2027. This is a key rating constraint driving the one-notch rating difference with Project. Innomotics' new capital structure will drive EBITDA leverage to a peak of 6.3x at end-2024. This is comparable to that of Flender and higher-rated peers, such as Ahlstrom, while being considerably lower than TK Elevator's. Key Assumptions Key Assumptions in Fitch's Rating Case for the Issuer - Revenue growth on average of 2.1% in 2025-2027 - EBITDA margin to improve to around 11% by 2027 on efficiency gains and repricing - Cash interest paid around EUR160 million post-refinancing, reflecting Fitch's latest Global Economic Outlook on interest rates - Broadly neutral working-capital flows - Capex to average around 3% of revenue until 2027 (also reflecting its more conservative revenue assumption) - No further M&A post-transaction nor dividends paid until 2027 Recovery Assumptions - The recovery analysis assumes that Innomotics would be reorganised as a going-concern (GC) in a bankruptcy, rather than liquidated in a default - A 10% administrative claim - Its GC EBITDA estimate of EUR275 million reflects Fitch's view of a sustainable, post-reorganisation EBITDA level on which Fitch bases the enterprise valuation (EV) - An EV multiple of 5.5x is applied to the GC EBITDA to calculate a post-reorganisation EV, in line with the industry median and peers' - The multiple of 5.5x reflects Innomotics´ business model as a multi-specialist manufacturer of electric motors serving diverse end-markets. It is further supported by its leading market position, a strong customer base, expertise and Siemens' branding in the short term - The waterfall analysis is based on the expected capital structure, which consists of all equally ranking senior RCF Fitch assumes to fully drawn in a post reorganisation scenario, senior secured notes, a euro term loan B (TLB), an US dollar TLB and a guarantee facility Fitch assumes to be 50% utilised, in line with Fitch's criteria - The principal waterfall analysis output percentage on current metrics and assumptions is 57% for the rated notes, corresponding to 'RR3'. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA margins above 11% - FCF margins sustained above 2% - EBITDA leverage below 5.5x, supported by a conservative financial policy towards deleveraging - EBITDA interest coverage above 2.5x Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA margins below 8% - Negative FCF margins on a sustained basis - EBITDA leverage above 6.5x - EBITDA interest coverage consistently below 1.5x - Consistently flat to negative cash from operations less capex/debt Liquidity and Debt Structure Comfortable Liquidity: The company's healthy post-transaction cash balance of around EUR150 million (after its adjustment for intra-year working-capital changes of 1% of sales) is supported by positive FCF from 2025 onwards and a proposed RCF, which Fitch assumes to be undrawn at financial year ending October 2024. The proposed instruments are to mature in 2031, further supporting the liquidity profile. Date of Relevant Committee 11 September 2024 Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- Dynamo Newco II GmbH senior secured LT B+(EXP) Expected Rating RR3 Dynamo Midco B.V. LT IDR B(EXP) Expected Rating Dynamo US Bidco Inc. senior secured LT B+(EXP) Expected Rating RR3 NOBIAN FINANCE: Moody's Rates New Extended Secured Term Loan 'B2' ----------------------------------------------------------------- Moody's Ratings assigned B2 ratings to Nobian Finance B.V.'s proposed amended and extended backed senior secured term loan and backed senior secured revolving credit facility (RCF). All other ratings of Nobian are unaffected, including the company's B2 corporate family rating and B2-PD probability of default rating. The outlook is positive. The proposed transaction seeks to extend the existing backed senior secured term loan and backed RCF by 3 years. The maturity date for the proposed amended and extended senior secured term loan is July 2029. The proposed RCF has a springing maturity (April 2026), which is subject to the outstanding amount of the senior secured notes. The company's EUR525 million backed senior secured notes, which mature in July 2026, are not subject to the proposed transaction. The ratings and outlook incorporate the expectation that the company will execute the proposed amended and extended transaction and address any outstanding debt maturity (including the senior secured notes) well ahead of the due date. RATINGS RATIONALE The contemplated amend and extend transaction would extend Nobian's maturity profile, which Moody's view as credit positive despite the slightly higher expected interest costs and transaction-related fees. Moody's expect Nobian's gross leverage, currently at 6.1x for the last twelve months ended June 2024, to remain unchanged while Moody's estimate EBITDA interest coverage, currently at 3.1x, to weaken very modestly by around 0.2x (based on LTM EBITDA), although this is subject to closing conditions. Moody's expect earnings to improve in the second half of 2024 compared to the same period previous year and forecast gross leverage to be in the range of 4.5x to 4.8x by the end of 2024. A more significant negative impact to the company's interest coverage will occur at the end of 2024 when its EUR500 million interest rate cap (with a 0% floor) matures. In July 2023, the company entered into a new interest rate cap, however at less favorable terms (with a 3% floor) effective after the expiration of the current cap. Nobian's B2 CFR continues to reflect the company's leading market positions in chlor-alkali products in Northwestern Europe; high profitability for its salt and chloromethanes businesses; long-standing relationships and a high level of integration with its key customers; and good liquidity, supported by its undrawn EUR200 million RCF, and its ability generate positive free cashflow. However, the company's geographical concentration in Northwestern Europe; exposure to volatile caustic soda prices; and some customer concentration, though its key customers allowed the company to produce at relatively high utilisation rates compared to other European chlorine peers, are credit negative. Event and financial policy risk due to the private equity ownership, including potential dividends, continues to weigh on the credit profile. LIQUIDITY Nobian's liquidity is good. As of the end of June 2024, the company had around EUR166 million of cash on balance and access to an undrawn EUR200 million RCF. In combination with forecast funds from operations, these sources should be sufficient to cover capital spending, working capital swings and working cash. The company has also access to a EUR100m trade receivable securitization program (undrawn). While not included in the proposed transaction, Moody's expect that the company will refinance its EUR525 million senior secured notes well ahead the July 2026 maturity date. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade ratings if (1) the company built a track record and committed to financial policies leading to Moody's-adjusted debt to EBITDA well below 5.0x on a sustained basis; (2) Moody's-adjusted FCF/debt would be consistently in the high single digits (%); (3) adjusted EBITDA/Interest remained above 2.5x; and (4) the company maintained a good liquidity. Conversely, Nobian's ratings could be downgraded if its (1) Moody's-adjusted debt/EBITDA increased above 6x on a sustainable basis; (2) liquidity profile deteriorated, for instance as a result of sustained negative FCF; (3) or Moody's-adjusted EBITDA interest coverage declined below 2.0x. The principal methodology used in these ratings was Chemicals published in October 2023. COMPANY PROFILE Based in the Netherlands, Nobian is a vertically integrated leading European producer of salt, essential base chemicals, and energy solutions. It primarily focuses on its chlor-alkali products (mainly chlorine and caustic soda), which accounted for around 60% of its sales in 2023. In 2023, the company generated revenue of around EUR1.7 billion and company-adjusted EBITDA of around EUR424 million. The company is owned by the private equity firm The Carlyle Group (majority shareholder) and GIC Private Limited, a Singaporean sovereign wealth fund. =========== P O L A N D =========== BANK MILLENNIUM: Fitch Gives BB+(EXP) Rating on Non-Preferred Bonds ------------------------------------------------------------------- Fitch Ratings has assigned Bank Millennium S.A.'s (BB+/Positive) upcoming issue of euro-denominated senior non-preferred (SNP) bonds an expected long-term rating of 'BB+(EXP)'. The assignment of a final rating is contingent on the receipt of documents conforming to the information already received. Key Rating Drivers Millennium's SNP debt is rated in line with the bank's Long-Term Issuer Default Rating (IDR), reflecting its expectations that the bank will use only SNP and more junior debt to meet its minimum requirement for own funds and eligible liabilities (MREL). The proposed fixed-rate notes are expected to have a maturity in 2029, with a call option in 2028, and will constitute direct, unsecured and unconditional obligation of Millennium. The net proceeds from the notes will be used for activities as described in Millennium's green bond framework and are intended to qualify as eligible liabilities for the purposes of MREL. On the consolidated level, the bank must comply with MREL set at 20.78% (including the combined buffer requirement of 2.75%) of risk-weighted assets (RWAs) of the resolution group, which excludes its mortgage bank subsidiary. At end-1H24, the buffer was 22.92% of RWAs, comfortably above the requirement. Millennium's ratings balance the benefits of an established domestic retail franchise, fairly conservative new loan underwriting and adequate asset quality against high legal costs stemming from an above-average exposure to legacy foreign-currency mortgage loans, which requires significant management attention (see Fitch Upgrades Millennium to 'BB+'; Outlook Positive dated 28 June 2024). Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The SNP debt rating would be downgraded if the bank's Long-Term IDR is downgraded. The SNP debt would also be downgraded to one notch below the bank's Long-Term IDR if Fitch expects Millennium to use senior preferred debt to meet its MREL while SNP and more junior debt would not exceed 10% of the Millennium resolution group's RWAs on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The SNP debt rating could be upgraded if the bank's Long-Term IDR is upgraded. Date of Relevant Committee 27 June 2024 ESG Considerations Millennium has an ESG Relevance Score for Management Strategy of '4'. This reflects its view of elevated government intervention risk in the Polish banking sector, which negatively affects the banks' operating environment and their ability to define and execute on their strategies. This has a negative impact on the bank's credit profile and is relevant to the ratings, in combination with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entities, either due to their nature or the way in which they are being managed by the entities. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Bank Millennium S.A. Senior non-preferred LT BB+(EXP) Expected Rating =========== T U R K E Y =========== ALTERNATIFBANK AS: Fitch Hikes LongTerm Foreign Currency IDR to BB- ------------------------------------------------------------------- Fitch Ratings has upgraded Alternatifbank A.S.'s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'BB-' from 'B' and Long-Term Local-Currency (LTLC) IDR to 'BB-' from 'B+'. The Outlooks are Stable. Fitch has also upgraded the bank's Viability Rating (VR) to 'b' from 'b-'. The rating action follows the upgrade of Turkiye's Long-Term IDR to 'BB-' from 'B+'. The sovereign upgrade reflects improved external buffers via Turkiye's strengthened foreign-exchange (FX) reserves position, underpinned by reduced financial dollarisation and FX demand, capital inflows and increased access to external borrowing. (See 'Fitch Upgrades Turkiye to 'BB-'; Outlook Stable' dated 6 September 2024 at www.fitchratings.com). These factors have significantly reduced near-term financial stability risks underlined by the banks' increased external market access in recent months, lower risk premiums, the elimination of banking sector FX swaps with the central bank and the gradual decline in FX and FX-protected deposits. Consequently, Fitch's view of the likelihood of government intervention in the banking system has reduced to the point that Fitch no longer consider it appropriate to notch Alternatifbank's LTFC IDR one notch below Turkiye's LTFC IDR. This approach had until now reflected its view of a higher likelihood of government intervention in the banking system than that of a sovereign default. The National Rating is unaffected by the rating action and will be reviewed if its National Ratings equivalency analysis results in different relative creditworthiness across Turkish issuers. Key Rating Drivers Support-Driven IDR, Country Risks: Alternatifbank's IDRs are driven by potential shareholder support, as reflected in its Shareholder Support Rating (SSR). Nonetheless, its LTFC IDR is constrained by Turkiye's Country Ceiling of 'BB-', while its LTLC IDR also takes into account Turkish country risks. The Stable Outlooks mirror those on the sovereign. The bank's 'B' Short-Term IDRs are the only option mapping to LT IDRs of 'BB-'. VR Upgrade: The VR upgrade reflects an improvement in operating environment conditions, which has strengthened the bank's standalone creditworthiness and support its financial metrics. The VR also reflects the bank's limited franchise, high wholesale funding, only adequate foreign-exchange (FX) liquidity and below-sector-average profitability, but also strengthened core capitalisation and adequate asset-quality. Shareholder Support Capped: Alternatifbank's SSR considers potential support from Qatar's The Commercial Bank P.S.Q.C. (CBQ), primarily reflecting reputational risks for its parent, but also its strategic importance, integration and role within the group. It is constrained by Turkiye's Country Ceiling of 'BB-'. Improving Operating Environment: The bank's operations are concentrated in the improved but still challenging Turkish operating environment. The normalisation of monetary policy has reduced near-term macro-financial stability risks and decreased external financing pressures. Banks remain exposed to high inflation, potential further depreciation, slowing economic growth, and multiple macroprudential regulations, despite recent simplification efforts. Limited Franchise: Alternatifbank has a limited domestic franchise (well below 1% market shares) resulting in limited pricing power. Lending is concentrated in the corporate (end-1H24: 62%) and commercial (37%) segments. Asset-Quality Risks: The non-performing loans ratio improved to 1.3% at end-1H24 (end-2023: 1.6%), reflecting still strong collections and, to a lesser extent, write-offs, while total reserves coverage was at 217%. Stage 2 loans were 10% of gross loans (65% restructured). Credit risks are heightened by high concentrations (the top 25 cash loans comprised 51% of gross loans or 2.7x common equity Tier 1 capital), exposure to the higher-risk construction and real estate sector (15% of gross loans), including shopping malls (about 8%) and still-high FC lending (45%). Fitch expects the non-performing loan (NPL) ratio to increase slightly towards 2% by end-2025, given higher rates and slower economic growth. Below Sector-Average Profitability: Operating profit declined to 2.3% of risk-weighted assets (RWAs) in 1H24 (sector: 3.8%) from 4.9% in 2023, driven by weaker net interest income amid high lira funding costs and loan growth caps, diminishing CPI linker gains, and trading losses due to higher swap costs and reduced customer FX transactions. Fitch expects Alternatifbank's operating profit to weaken to slightly above 2% of RWAs in 2024 as funding costs weigh on margins, loan growth caps remain in place and cost of risk rises, while fee income should remain supportive. Adequate Core Capitalisation: Alternatifbank's common equity tier 1 (CET1) ratio decreased to 11.2% at end-1H24 from 11.9% at end-2023, largely reflecting the tightening of regulatory forbearance on FC RWAs as well as weaker earnings. Its total capital ratio of 25.4% at end-1H24 was supported by additional Tier 1 (AT1), which provides a partial hedge against lira depreciation. Its view of capitalisation considers ordinary support from CBQ given its record of capital support since 2018 (including CET1 and AT1). Fitch expects Alternatifbank's CET1 ratio to remain at around 11% in 2024. Wholesale Funding, Only Adequate FC Liquidity: Customer deposits comprised only 39% of total non-equity funding at end-1H24 (36% in FC and 6% in FX-protected lira deposits), reflecting high and increased reliance on wholesale funding (61% of total funding) in the macroprudential regulatory environment. As a result, the bank's loans/deposits ratio increased further to a high 164% at end-1H24 from 147% at end-2023. Fitch expects Alternatifbank's loans/deposits ratio to remain at about current levels at end-2024. FC liquid assets covered over half of FC debt due within one year at end-1H24, and a higher proportion net of CBQ funding. FC liquid assets include FX swaps with foreign counterparties, cash, placements and unencumbered government securities. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Turkiye's sovereign rating or an increase in its view of government intervention risk would lead to a downgrade of Alternatifbank's SSR, leading to negative rating action on its Long-Term IDRs, although this is not its base case. Alternatifbank's SSR is also sensitive to Fitch's view of the shareholder's ability and propensity to provide support. The bank's VR is primarily sensitive to a weakening in the operating environment and a sovereign downgrade although this is not its base case. The VR could also be downgraded due to an erosion of its core capitalisation, for example due to asset-quality weakening, if not offset by ordinary support from CBQ. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A positive change in Turkiye's LT IDRs would likely lead to similar action on the bank's SSR and LT IDRs. An upward revision of Turkiye's Country Ceiling could also lead to an upgrade of the bank's SSR and LT IDRs. A VR upgrade is primarily sensitive to the strength of capital and FC liquidity buffers, and stable earnings performance, combined with a strengthening in the bank's business profile, in the context of improving operating environment conditions. VR ADJUSTMENTS The operating environment score of 'b+' for Turkish banks is lower than the category implied score of 'bb' due to the following adjustment reason: macroeconomic stability (negative). The adjustment reflects heightened market volatility, high dollarisation and high risk of FX movements in Turkey. Public Ratings with Credit Linkage to other ratings Alternatifbank's ratings are linked to that of its parent CBQ. ESG Considerations The ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by increased regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the bank's credit profile and is relevant to the bank's rating in combination with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Alternatifbank A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b Upgrade b- Shareholder Support bb- Upgrade b BURGAN BANK: Fitch Hikes LongTerm Foreign Currency IDR to 'BB-' --------------------------------------------------------------- Fitch Ratings has upgraded Burgan Bank A.S.'s (BBT) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'BB-' from 'B' and Long-Term Local-Currency (LTLC) IDR to 'BB-' from 'B+'. The Outlooks are Stable. Fitch has also upgraded the bank's Viability Rating (VR) to 'b' from 'b-'. The rating action follows the upgrade of Turkiye's Long-Term IDR to 'BB-' from 'B+'. The sovereign upgrade reflects improved external buffers underlined by Turkiye's strengthened foreign-exchange (FX) reserves position, underpinned by reduced financial dollarisation and FX demand, capital inflows and increased access to external borrowing. These factors have significantly reduced near-term financial stability risks evidenced by the banks' increased external market access in recent months, lower risk premiums, the elimination of banking sector FX swaps with the central bank and the gradual decline in FX and FX-protected deposits. Consequently, Fitch's view of the likelihood of government intervention in the banking system has reduced to the point that Fitch no longer consider it appropriate to notch BBT's LTFC IDR one notch below Turkiye's LTFC IDR. This approach had until now reflected its view of a higher likelihood of government intervention in the banking system than that of a sovereign default. Key Rating Drivers BBT Issuer Default Ratings (IDRs) are driven by its Shareholder Support Rating (SSR). Nonetheless, its LTFC is constrained by Turkiye's Country Ceiling of 'BB-' while the LTLC IDR also takes into account Turkish country risks. The Stable Outlooks mirror those on the sovereign. The bank's 'B' Short-Term IDRs are the only option mapping to LT IDRs of 'BB-'. The Viability Rating (VR) reflects the bank's limited franchise, improving asset quality, adequate capitalisation, adequate FC liquidity and ordinary support from BBK. Shareholder Support Capped: BBT's SSR considers potential support from Kuwait's Burgan Bank K.P.S.C. (BBK), reflecting its ownership, integration with the BBK group, and the reputational risk from the banks' shared branding. It is constrained by Turkiye's Country Ceiling of 'BB-'. Improving Operating Environment: BBT's operations are concentrated in the improving but volatile Turkish operating environment. The normalisation of monetary policy has reduced near-term financial stability risks and external financing pressures. Banks remain exposed to high inflation, potential further Turkish lira depreciation, slowing economic growth and multiple macro-prudential regulations, despite recent simplification efforts. Small Domestic Franchise: BBT provides universal banking services in Turkiye with less than 1% market share of total assets at end-1Q24, resulting in limited competitive advantages. BBT also provides financial leasing and investment banking services through its subsidiaries, which were 15% of consolidated assets. The bank also actively invests in its digital offering to improve its access to the retail segment and widen its customer base. Improving Asset Quality Metrics: BBT's impaired (Stage 3) loans/gross loans ratio has improved to 2.2% at end-1H24 from 5.7% at end-2022, driven by strong collections and limited new inflows in 1H24. Nevertheless, the ratio remained higher than the sector (end-1H24: 1.5%). High Stage 2 loans (end-1H24: 15.9% of gross loans; 6.2% average coverage), concentration and high FC lending (end-1H24: 46%) raise asset-quality risks. Total impaired loans reserve coverage is low (83%), reflecting reliance on collateral. Free provisions were 3.0% of gross loans at end-1H24. Fitch expects the impaired loans ratio to rise slightly to 2.5% at end-2024, reflecting asset-quality pressures arising from tight monetary policy. Adequate Profitability: BBT's operating profit/risk-weighted assets (RWAs) decreased to 3.4% in 1H24 (sector: 3.8%) from 5.8% in 2023 largely due to increased operating expenses, despite provision reversals (24% of operating profit) and a net interest margin that increased to 4.8% in 1H24 from 3.7% in 2023. Performance remains sensitive to slower GDP growth, macro-economic and regulatory developments and asset-quality risks. Fitch expects the operating profit/RWAs ratio to remain around its current level at end-2024. Only Adequate Core Capital: BBT's common equity Tier 1 ratio decreased slightly to 10.1% at end-1H24 (end-2023: 10.2%), including an 83bp forbearance uplift, mainly due to tightening forbearances. Pre-impairment operating profit (1H24: 4.0% of average gross loans, annualised), and free provisions (equal to 2% of RWAs) provide an additional buffer. BBK has provided regular capital support to the bank since 2018. Risks to capitalisation remain given sensitivity to lira depreciation due to the inflation of FC RWAs and asset-quality risks. Fitch expects the common equity Tier 1 ratio to remain almost stable at 10% at end-2024due to increased operating expenses and a slight deterioration in the impaired loans/gross loans ratio. Wholesale Funding; Only Adequate FC Liquidity: Deposits comprised only 49% of total non-equity funding at end-1H24, including 28% in FC. Wholesale funding made up 51% of total funding, but parent funding, at 27% of total funding, mitigates risks. FC liquid assets did not cover all short-term FC liabilities at end-1H24, as the bank has shifted its FC funding focus from costly FC deposits to borrowing from the parent and third parties, given pricing advantages. Fitch expects BBT's loans/deposits ratio to remain at about current levels at end-2024. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Turkiye's sovereign rating or an increase in its view of government intervention risk would lead to a downgrade of BBT's SSR, leading to negative rating action on its Long-Term IDRs, although this is not its base case. BBT's SSR is also sensitive to Fitch's view of the shareholder's ability and propensity to provide support. The bank's VR is primarily sensitive to a weakening in the operating environment and a sovereign downgrade, although this is not its base case. The VR could also be downgraded due to erosion of core capitalisation, for example due to asset-quality weakening, if not offset by ordinary support from the parent. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of the bank's Long-Term IDRs and SSR would require a sovereign rating upgrade. A VR upgrade is primarily sensitive to the strength of capital and FC liquidity buffers, stable earnings performance and an improvement of the business profile performance in the context of improving operating environment conditions. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The bank's 'AA(tur)' National Rating is driven by shareholder support and is in line with foreign-owned peers' in Turkiye. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The National Rating is sensitive to a change in the bank's LTLC IDR and a change in its creditworthiness relative to that of other Turkish issuers with a 'BB-' LTLC IDR. VR ADJUSTMENTS The 'b+' operating environment score for Turkish banks is lower than the category implied score of 'bb' due to the following adjustment reason: macroeconomic stability (negative). The adjustment reflects heightened market volatility, high dollarisation and high risk of FX movements in Turkiye. Public Ratings with Credit Linkage to other ratings BBT's ratings are linked to those of its parent Burgan Bank K.P.S.C. ESG Considerations The ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Managements' ability across the sector to determine their own strategy and price risk is constrained by increased regulatory interventions and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on banks' credit profiles and is relevant to banks' rating in combination with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Prior ----------- ------ ----- Burgan Bank A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b Upgrade b- Shareholder Support bb- Upgrade b ING BANK: Fitch Gives 'B+(EXP)' Rating on Tier 2 Notes ------------------------------------------------------ Fitch Ratings has published ING Bank A.S.'s (INGBT; BB-/Stable) planned issue of Basel III- compliant Tier 2 notes an expected rating of 'B+ (EXP)'. The Recovery Rating is 'RR5'. The final rating is subject to the receipt of the final documentation conforming to information already received by Fitch. The notes will constitute direct, unsecured, unconditional and subordinated obligations and rank equally with other subordinated obligations but in priority to junior obligations. The notes qualify as Basel III-compliant Tier 2 instruments and contain contractual loss-absorption features, which will be triggered at the point of non-viability of the bank. The notes are subject to permanent partial or full write-down upon the occurrence of a non-viability event (NVE). The notes have a call option after five years. Key Rating Drivers The subordinated notes are rated one notch below INGBT's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) of 'BB-', in accordance with Fitch's Bank Rating Criteria, for loss severity. Fitch has not applied any notches for non-performance risk. The anchor rating for the notes is INGBT's LTFC IDR, which reflects its view that potential extraordinary shareholder support from parent ING Bank N.V. (ING; AA-/Stable) is likely to flow through to INGBT's subordinated noteholders. The one notch for loss severity, rather than its baseline two notches, reflects Fitch's view that shareholder support from ING could help mitigate losses, and incorporates the cap on the bank's LTFC IDR at 'B' due to its view of government intervention risk. Fitch has not applied any notches for incremental non-performance risk, as it believes that write-down of the notes will only occur once the point of non-viability is reached and there is no coupon flexibility prior to non-viability, as the notes do not incorporate going-concern loss-absorption features. The rating also reflects the likelihood that an INGBT default would be driven by some form of transfer and convertibility restrictions, rather than a loss of solvency or liquidity. The notes' 'RR5' Recovery Rating reflects below-average recovery prospects in a default. An NVE is defined as occurring when the bank has incurred losses and has become, or is likely to become, non-viable as determined by the local regulator, the Banking and Regulatory Supervision Authority (BRSA). The bank will be deemed non-viable when it reaches the point at which either the BRSA determines that its operating licence is to be revoked and the bank liquidated, or the rights of shareholders (except to dividends), and the management and supervision of the bank, should be transferred to the Savings Deposit Insurance Fund on the condition that losses are deducted from the capital of existing shareholders. INGBT's LTFC IDR is driven by shareholder support from ING. Its view of support reflects INGBT's strategic importance to, and role within, the wider group, and its small size relative to ING's ability to provide support. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As the notes are notched down from INGBT's LTFC IDR, their rating is sensitive to a downgrade of the LTFC IDR. The notes' rating is also sensitive to an unfavourable revision in Fitch's assessment of loss severity and non-performance risk. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' rating is sensitive to an upgrade of INGBT's LTFC IDR. Date of Relevant Committee 12 September 2024 Public Ratings with Credit Linkage to other ratings INGBT's ratings are linked to ING's. ESG Considerations INGBT has an ESG Relevance Score of '4' for Management Strategy, reflecting an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the bank's credit profiles and is relevant to bank's ratings in combination with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- ING Bank A.S. Subordinated LT B+(EXP) Publish RR5 TURK EKONOMI: Fitch Assigns CCC+ Rating on USD300MM Tier 1 Notes ---------------------------------------------------------------- Fitch Ratings has assigned Turk Ekonomi Bankasi A.S.'s (TEB; BB-/Stable/b+) USD300 million additional Tier 1 (AT1) capital notes a final rating of 'CCC+'. The final rating is one notch higher than the expected rating assigned on September 4, 2024, reflecting TEB's VR upgrade to 'b+' from 'b' following the Turkish sovereign upgrade on September 6, 2024. Key Rating Drivers The AT1 notes are rated three notches below TEB's Viability Rating (VR) of 'b+'. The notching comprises two notches for loss severity given the notes' deep subordination, and one notch for incremental non-performance risk given their full discretionary, non-cumulative coupons. Fitch has used the bank's VR as anchor rating as Fitch deems it the most appropriate measure of non-performance risk. In accordance with the Bank Rating Criteria, Fitch has applied three notches from TEB's VR, instead of the baseline four notches, due to rating compression, as TEB's VR is below the 'BB-' threshold. The notes are Basel III-compliant, perpetual, deeply subordinated, fixed-rate resettable AT1 debt securities. They have fully discretionary, non-cumulative coupons and are subject to full or partial principal write-down if TEB's common equity Tier 1 (CET1) on a bank-only or group-basis ratio falls below 5.125%. They have a call option (subject to approval by the Banking Regulation and Supervision Agency (BRSA)) after five years and on any interest payment date thereafter. The notes are also subject to permanent partial or full write-down, on the occurrence of a non-viability event (NVE). An NVE is when a bank incurs a loss (on a consolidated or non-consolidated basis) and the bank becomes, or it is probable that the bank will become, non-viable as determined by the BRSA. The bank will be deemed non-viable should it reach the point at which the BRSA determines its operating license is to be revoked and the bank liquidated, or the rights of the bank's shareholders (except to dividends), and the management and supervision of the bank, are transferred to the Savings Deposit Insurance Fund on the condition that losses are deducted from the capital of existing shareholders. TEB's consolidated regulatory CET1 and Tier 1 ratios (including regulatory forbearance of fixing of exchange rate and cancellation of M-t-M losses) were both at 9.3%, at end-1H24, above its regulatory minimum requirements of 7.0% and 8.5%, respectively, including a capital conservation buffer of 2.5%. Fitch estimates that the AT1 issue will increase the Tier-1 ratio by 230bp. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As the notes are notched down from TEB's VR, the rating is sensitive to a downgrade of the VR. This may result, for example, from a significant decline in capital buffers relative to regulatory requirements. The notes' rating is also sensitive to an unfavourable revision in Fitch's assessment of incremental non-performance risk. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' rating is sensitive to an upgrade of TEB's VR but the notching of the notes' rating could be widened to four should TEB's VR be upgraded to the 'bb-' threshold and above. Public Ratings with Credit Linkage to other ratings TEB's IDRs are driven by shareholder support from its majority shareholder, BNPP. ESG Considerations TEB has an ESG Relevance Score for Management Strategy of '4', reflecting an increased regulatory burden on the bank. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the bank's credit profile and is relevant to the bank's ratings in combination with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turk Ekonomi Bankasi A.S. Subordinated LT CCC+ New Rating CCC(EXP) TURK P&I: Fitch Hikes Insurer Fin. Strength Rating to 'BB-' ----------------------------------------------------------- Fitch Ratings has upgraded Turk P ve I Sigorta A.S.'s (Turk P&I) Insurer Financial Strength (IFS) rating to 'BB-' from 'B+'. The Outlook is Stable. The upgrade follows a recent similar action on Turkiye's sovereign ratings and Country Ceiling. The sovereign's ratings and Outlook are factors in its assessment of the insurer's industry profile and operating environment, company profile and investment risks. The IFS rating reflects Turk P&I's 'Moderate' company profile compared with other Turkish insurers, investment risks skewed towards the Turkish banking sector and exposure to the Turkish economy, in line with the rest of the market. The rating also reflects Turk P&I's adequate earnings and weak, but improving, capitalisation. Key Rating Drivers Turkish Marine Specialist: Fitch assesses Turk P&I on its standalone credit quality, but also considers the ownership structure, which is equally divided between public and private interests. Fitch believes the company's ownership and its strategic role in the Turkish economy are supportive of its credit profile. Turk P&I, Turkiye's first protection and indemnity (P&I) insurance provider, also underwrites hull and machinery (H&M) insurance, which accounted for around 70% of net premiums in 2023. 'Moderate' Business Profile: Turk P&I's 'Moderate' business profile is underpinned by increasing international diversification, in addition to its ownership and strategic role in Turkiye, despite its small size, limited history and less established business lines. Its business volumes grew strongly in 2023, supported by local laws, with a higher contribution from its international business. Weak but Improving Capitalisation: The insurer's regulatory solvency ratio weakened to 65% at end-2023 from 90% at end-2022. This was driven by large claims due to storms in Marmara and the Black Sea regions, which significantly lowered prior-year profit and equity, as well as a strong rise in net premiums. Turk P&I implemented an increase in paid-in capital of TRY200 million in September 2024 and expects to restore the regulatory solvency ratio to over 100% by end-2024. High Exposure to Banking System: Turk P&I's balance sheet comprises deposits in Turkish banks, with some concentration on a single state-owned bank as well as bonds issued by the government and domestic banks. This indicates a high exposure to the domestic banking sector, in line with the rest of the Turkish insurance market. Adequate but Volatile Earnings: The insurer's earnings have been strong over the past five years and Fitch views its financial performance and earnings as a rating strength. However, earnings were reduced in 2H23 by large storm claims. In 1H24, Turk P&I reported a net income of TRY30 million (1H23: TRY70 million). Its profitability was strongly influenced by higher investment income due to sharply higher interest rates in 1H24 and foreign-exchange (FX) gains. Turk P&I receives most of its premium income and pays most of its claims in foreign currencies. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Business risk profile deterioration, for example, due to a sharp deterioration in the maritime trade environment. - Downgrade of Turkiye's sovereign rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An improvement in the company profile assessment, for example, due to sustained profitable growth while maintaining its regulatory solvency ratio comfortably above 100%. - An upgrade of Turkiye's sovereign rating. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turk P ve I Sigorta A.S. LT IFS BB- Upgrade B+ TURKLAND BANK: Fitch Affirms 'B' IDRs, Off Watch Negative --------------------------------------------------------- Fitch Ratings has affirmed Turkland Bank A.S.'s (T-Bank) Long-Term Foreign-Currency (LTFC) and Local-Currency (LTLC) Issuer Default Ratings (IDRs) at 'B ' and removed them from Rating Watch Negative (RWN). The Outlooks are Stable. Fitch has also affirmed the bank's Shareholder Support Rating (SSR) at 'b' and removed it from RWN. Fitch has also upgraded the bank's Viability Rating (VR) to 'b-' from 'ccc+'. Fitch has removed the RWN placed in November 2023 as Fitch does not expect the sale of the bank to progress and be completed (see Fitch Places Turkland Bank on Rating Watch Negative dated 3 November 2023) and Fitch deems the ability and propensity of Arab Bank Plc (AB; BB/Stable) to provide support to T-Bank to be unchanged. The upgrade of T-Bank's VR reflects an improvement in its standalone credit profile as a reduction in legacy impaired loans has reduced capital-impairment risks while improved, albeit still volatile, profitability has improved capitalisation. The bank's National Rating has been placed on Rating Watch Evolving (RWE), reflecting a potential revision of the rating if its National Rating equivalency analysis results in different relative creditworthiness across Turkish issuers. Key Rating Drivers T-Bank's IDRs are driven by potential support from its Jordan-based 50% owner, AB, as reflected by its SSR. The Stable Outlooks on the IDRs mirror those on AB. Its 'B' Short-Term IDRs are the only option mapping to LT IDRs in the 'B' category. T- Bank's 'b-' VR reflects its small size and limited franchise, still weak, albeit recently improved, asset quality, loans and deposit concentrations, volatile profitability and still weak, but improved, capitalisation. Shareholder Support: T-Bank's SSR considers its 50% ownership by AB, but also its limited role within the group as Fitch views Turkiye as a non-core market for AB. It also reflects AB's classification of T-Bank as an investment held for sale in its financial statements, which, in its view, indicates a high potential for disposal, and limits reputational risk for AB, thereby reducing its propensity to support T-Bank. Limited Franchise: T- Bank had a 0.1% share of banking sector assets at end-1H24, resulting in limited pricing power. Lending is concentrated in the corporate and commercial segment (end-1H24: 100% of gross loans) largely via short-term lira lending. Capital Pressures Decreasing: T-Bank's common equity Tier 1 (CET1) ratio rose to 17.0% at end-1H24 (excluding forbearance: 16.0%) from 14.7% at end-2023 (excluding forbearance: 13.5%), supported by internal capital generation. Pressure on capital through unreserved impaired loans has reduced (end-1H24: 13% of CET1; end-2023: 18%; end-2022: 57%; end-2021: 91%). Capitalisation remains weaker than at peers with higher reserve coverage of impaired loans. Capitalisation is sensitive to lira depreciation (due to the inflation of FC risk-weighted assets), internal capital generation, risks to asset quality, and growth. Fitch expects the CET1 ratio to be around 12% at end-2024. Asset-Quality Risks: T-Bank's impaired (Stage 3) loans ratio fell to 5.5% at end-1H24 (end-2023: 5.8%; end-2022: 19.3%) despite a contraction in loans, as collections exceeded inflows. The impaired loans ratio remains higher than the sector average of 1.5%, reflecting the bank's legacy asset-quality weaknesses. Stage 2 loans are less than 1% of gross loans. Credit risks are heightened by high borrower concentration - the top 25 cash loans were 64% of gross loans or 4x CET1 capital - and by FC lending (29% of total lending), albeit below the sector average of 36% at end-1H24. Fitch expects the impaired loans ratio to be around 5% at end-2024. Volatile Profitability: T-Bank's operating profit rose to 8.1% of risk-weighted assets (RWAs) in 1H24 (sector: 3.8%) from 5.7% in 2023, supported by provision reversals (76% of operating profit) as trading losses and high operating costs eroded improved net interest income. The bank has been recording positive pre-impairment profits since 2022 although it has been volatile (1H24: 0.9% of average assets; 2023: 4.2%; 2022: 1.8%). Profitability is sensitive to slower GDP growth, macroeconomic and regulatory developments, inflationary pressure on costs, asset-quality risks and growth. Fitch expects operating profit to decrease to around 2% of RWAs for 2024. Deposits-Funded; High FC Deposits Share: T-Bank is almost entirely funded by customer deposits (end-1H24: 99.5% of non-equity funding), mitigating refinancing risk. The deposit base remains concentrated with the top 20 depositors at 40% of total customer deposits at end-1H24. Significant deposit dollarisation (end-1H24: 53% of total customer deposits) and foreign-exchange protected lira deposits (32%) create FC liquidity risks. FC liquidity fully covered FC deposits at end-1H24. Fitch expects loans/ deposits to increase to around 70% at end-2024. Improving Operating Environment: T-Bank's operations are concentrated in the improving but still challenging Turkish operating environment. The normalisation of monetary policy has reduced near-term macro-financial stability risks and external financing pressures but banks remain exposed to high inflation, potential further lira depreciation, slowing economic growth, and multiple macroprudential regulations, despite simplification efforts. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade T-Bank's IDRs are primarily sensitive to changes in its SSR. The SSR is sensitive to an adverse change in Fitch's view of AB's ability and propensity to provide support. A multi -notch downgrade of Turkiye's sovereign rating would lead to a downgrade of T- Bank's SSR and, consequently, its Long-Term IDRs. T-Bank's VR could be downgraded due to an erosion in the capital buffer, for instance through significant deterioration of asset quality and profitability, or a weakening of its FC liquidity position, if not offset by ordinary shareholder support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of the bank's IDRs is unlikely as the bank is classified as an investment held for sale by AB. A VR upgrade could stem from a significant improvement in asset quality that reduces risks to capitalisation alongside a longer record of improved sustainable profitability and a strengthening of its business profile. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The National Long-Term Rating is lower than that of other foreign-owned banks in Turkiye, reflecting weaker support propensity. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The National Rating is sensitive to changes in T-Bank's LTLC IDR and the RWE would be removed once Fitch has assessed the bank's creditworthiness relative to that of other Turkish issuers. VR ADJUSTMENTS The operating-environment score of 'b+' is below the 'bb' category implied score due to the following adjustment reason: macroeconomic volatility (negative). Public Ratings with Credit Linkage to other ratings T-Bank's IDRs are linked to ratings of AB. ESG Considerations T- Bank has an ESG Relevance Score for Management Strategy of '4', reflecting a high regulatory burden on most Turkish banks. Management ability across the sector to determine their own strategy is constrained by regulatory interventions and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on banks' credit profiles and is relevant to banks' ratings in combination with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turkland Bank A.S. LT IDR B Affirmed B ST IDR B Affirmed B LC LT IDR B Affirmed B LC ST IDR B Affirmed B Natl LT A(tur)Rating Watch Revision A(tur) Viability b- Upgrade ccc+ Shareholder Support b Affirmed b [*] Fitch Hikes 3 Turkish Non-Bank Fin. Institutions to 'BB-' IDR ----------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) of three Turkish non-bank financial institutions - Volkswagen Dogus Finansman A.S. (VDF Finans), VDF Filo Kiralama A.S. (VDF Filo) and VDF Faktoring A.S. - to 'BB-' from 'B+'. Fitch has also upgraded their Shareholder Support Ratings (SSRs) to 'bb-' from 'b+'. The Outlook on the IDRs is Stable. The issuers' National Ratings are unaffected by the rating actions but may be reviewed if Fitch's National Ratings equivalency analysis results in different relative creditworthiness across Turkish issuers. The rating actions follow the upgrade of Turkiye's Long-Term IDRs and Country Ceiling dated September 6, 2024. Key Rating Drivers Support-Driven Ratings: The three companies' ratings are driven by support from their controlling shareholder, Volkswagen Financial Services Overseas AG (VWFSO, A-/Stable), reflected in their SSRs of 'bb-'. Fitch views these subsidiaries as strategically important, given their mandate to complement and support Volkswagen's (VW) operations in Turkiye. Ratings Constrained by Country Ceiling: The companies' Long-Term IDRs and SSRs are constrained by Turkiye's 'BB-' Country Ceiling as expressed by their SSR of 'bb-'. The Country Ceiling captures transfer and convertibility risks and limits the extent to which support from VWFSO can be factored into the IDRs. The Stable Outlook on the IDR mirrors that on Turkiye's sovereign ratings. Joint-Venture Structure: Ownership of the VDF entities is split, with 51% held by VW (through VWFSO) and the remaining 49% by Dogus Group. Dogus is a major Turkish conglomerate involved in various sectors and is also the exclusive importer of VW vehicles in Turkiye. All three companies rely heavily on VW activity in Turkiye as they conduct most of their business activities within the group or with VW group car dealers. In addition, VWFSO provides a significant portion of their financing. Fitch believes VWFSO would provide financial support to VDF entities when needed. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The Long-Term IDRs and SSRs would be likely to be downgraded on a downgrade of Turkiye's Country Ceiling. - Changes in the propensity of support from VWFSO, for example as a result of dilution of ownership, a loss of operational control or diminishing importance of the Turkish market, could also trigger a downgrade of the IDRs and SSRs. - Deterioration of the companies' creditworthiness relative to other Turkish issuers would be likely to trigger a downgrade in the National Ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Turkiye's Country Ceiling as a result of a sovereign rating upgrade would be likely to be reflected in the three companies' IDRs. Public Ratings with Credit Linkage to other ratings The ratings are driven by VWFSO's potential support and constrained by Turkiye's country ceiling. ESG Considerations Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of 3. This means that other ESG issues are credit neutral or have only a minimal credit impact, either due to their nature or to the way in which they are being managed. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Volkswagen Dogus Finansman A.S. LT IDR BB- Upgrade B+ ST IDR B Affirmed B Shareholder Support bb- Upgrade b+ VDF Filo Kiralama A.S. LT IDR BB- Upgrade B+ ST IDR B Affirmed B Shareholder Support bb- Upgrade b+ VDF Faktoring A.S. LT IDR BB- Upgrade B+ ST IDR B Affirmed B Shareholder Support bb- Upgrade b+ [*] Fitch Hikes IDRs on 11 Turkish Non-Bank Entities to 'BB-' ------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Foreign-Currency (LTFC) Issuer Default Ratings (IDRs) of 11 Turkish non-bank financial institutions (NBFIs) to 'BB-' from 'B', and upgraded the LTFC IDR of Istanbul Takas ve Saklama Bankasi A.S. (Takasbank) to 'BB-' from 'B+'. Fitch has also upgraded the Long-Term Local-Currency (LTLC) IDRs of 12 NBFI's to 'BB-' from 'B+'. All Outlooks are Stable. The issuers' National Ratings are unaffected by the rating actions, but may be reviewed if Fitch's National Ratings equivalency analysis results in a different relative creditworthiness across Turkish issuers. The rating actions follow the upgrade of Turkiye's Long-Term IDRs and Country Ceiling, and subsequent rating actions on the parent banks. The issuers affected by the rating action include Takasbank and NBFI subsidiaries of Turkish commercial banks which are: Ak Finansal Kiralama A.S. (Ak Leasing), Alternatif Finansal Kiralama A.S. (Alternatif Leasing) Deniz Finansal Kiralama A.S. (Deniz Leasing) Garanti Faktoring A.S. (Garanti Faktoring) Garanti Finansal Kiralama A.S. (Garanti Leasing) Is Finansal Kiralama Anonim Sirketi (Is Leasing) QNB Finans Faktoring A.S. (QNB Faktoring) QNB Finans Finansal Kiralama A.S. (QNB Leasing) Yapi Kredi Faktoring A.S. (Yapi Kredi Faktoring) Yapi Kredi Finansal Kiralama A.O. (Yapi Kredi Leasing) Yapi Kredi Yatirim Menkul Degerler A.S. (Yapi Kredi Yatirim) Key Rating Drivers Bank-owned Subsidiaries Driven by Support: The LT IDRs and Shareholder Support Ratings (SSRs) of the 11 bank-owned NBFIs are equalised with those of their respective parents, reflecting Fitch's view that they are core and highly integrated subsidiaries. The upgrades reflect the improvement in these banks' standalone strength as well as the positive impact of the improving operating environment on their credit profiles. High Support Propensity: The NBFI subsidiaries of the Turkish banks offer core products and services (leasing, factoring and investment services) in the domestic market. The cost of support would be limited as the subsidiaries are small compared with their parents and their total assets usually do not exceed 3% of group assets. The ratings of the NBFI subsidiaries reflect their close integration with their parents, the reputational risks of the subsidiaries' defaults for their broader groups and their ultimate full or majority ownership by their respective parent. Fitch is not able to assess the subsidiaries' intrinsic strengths, as all companies are highly integrated into their respective parents and their franchises rely heavily on their parents. Government Support Drives Takasbank Ratings: The upgrades of Takasbank's LT IDRs are driven by the upgrade of its Government Support Rating (GSR) to 'bb-' from 'b+'. The upgrade of its GSR follows the upgrade of the sovereign IDRs, which reflects an improvement in sovereign's ability to provide support. The Stable Outlooks mirror the sovereign's. Takasbank Systemically Important for Turkiye: Fitch views Takasbank as having exceptionally high systemic importance for the Turkish financial sector. Contagion risk from a Takasbank default would be high, given the bank's interconnectedness with the wider Turkish financial sector as Turkiye's only central counterparty clearing house (CCP). Fitch believes that the ability of the Turkish sovereign to support Takasbank is stronger than for systemically important domestic banks, as Takasbank has no corporate debt and has only a minor direct FC exposure. Takasbank is majority state-owned, via Borsa Istanbul A.S., Turkiye's main stock exchange. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade NBFI subsidiaries of the Turkish banks: The LT IDRs are sensitive to a downgrade of their parents' LT IDRs or to a deterioration in the operating environment, which, for example, could be triggered by a sovereign downgrade. The ratings could be notched down from their parents on material deterioration in the parents' propensity or ability to provide support or if the subsidiaries become materially larger relative to the parents' ability to support. The ratings could also be notched down from their parents' if the subsidiaries' strategic importance is materially reduced through, for example, a substantial reduction in operational and management integration or ownership, or a prolonged period of under-performance. Takasbank: A downgrade of Turkiye's sovereign ratings would be mirrored in Takasbank's IDRs. A deterioration in the sovereign's propensity to provide support due to an adverse change in Takasbank's systemic importance or reduced ownership (through privatisation) would also be reflected in its IDRs and GSR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade NBFI subsidiaries of the Turkish banks: Upgrades of the parents' ratings or a revision of the Outlooks would be reflected in the subsidiaries' ratings. Takasbank: A positive rating action on Turkiye's sovereign ratings would be mirrored in Takasbank's LT IDRs. Public Ratings with Credit Linkage to other ratings The entities' ratings are linked to their parent bank's ratings. ESG Considerations NBFI subsidiaries of the Turkish banks have an ESG Relevance Score of '4' for Management Strategy in line with their respective parents' Management and Strategy ESG Relevance Score. This reflects the high regulatory burden on most Turkish banks. The management's ability to determine strategy is constrained by regulations and creates an additional operational burden for the respective parent banks. The alignment reflects Fitch's view of high integration. Takasbank has an ESG Relevance Score of '4' for Governance Structure due to government influence over the board's strategy and governance, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of '3'. This means that other ESG issues are credit neutral or have only a minimal credit impact, either due to their nature or to the way in which they are being managed. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Is Finansal Kiralama Anonim Sirketi LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b QNB Finans Finansal Kiralama A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Ak Finansal Kiralama A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Yapi Kredi Finansal Kiralama A.O. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Alternatif Finansal Kiralama A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Garanti Finansal Kiralama A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Yapi Kredi Faktoring A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Istanbul Takas ve Saklama Bankasi A.S. LT IDR BB- Upgrade B+ ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Government Support bb- Upgrade b+ QNB Finans Faktoring A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Yapi Kredi Yatirim Menkul Degerler A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Deniz Finansal Kiralama A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b Garanti Faktoring A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Shareholder Support bb- Upgrade b [*] Fitch Upgrades 24 Turkish Banks on Sovereign Upgrade -------------------------------------------------------- Fitch Ratings has upgraded 12 Turkish banks' Long-Term Foreign-Currency (LTFC) Issuer Default Ratings (IDRs) to 'BB-' from 'B', seven banks' LTFC IDRs to 'B+' from 'B' and five banks' LTFC IDRs to 'B' from 'B-'. The Outlooks for banks with 'BB-' LTFC IDRs have been revised to Stable from Positive, while banks with 'B+' LTFC IDRs driven by their Viability Ratings (VRs) remained on Positive Outlooks, and the Outlooks for banks driven by government support were revised to Stable. Most 'B' LTFC IDRs remained on Positive Outlooks. Fitch has also upgraded the VRs of 16 banks. Fitch has also upgraded AB Kazakhstan - Ziraat International Bank JSC's (KZI) support driven LTFC and LTLC IDRs to 'B+' from 'B' with Stable Outlook. The Involved Entities are: Turkiye Sinai Kalkinma Bankasi A.S. Turkiye Emlak Katilim Bankasi A.S. ING Bank A.S. Turkiye Halk Bankasi A.S. Denizbank A.S. KT21 T2 Company Limited Albaraka Turk Katilim Bankasi A.S. Albaraka MTN Ltd QNB Finansbank Anonim Sirketi Turkiye Finans Katilim Bankasi A.S. Turk Ekonomi Bankasi A.S. AKBANK T.A.S. Arap Turk Bankasi A.S. Anadolubank A.S. Sekerbank T.A.S. Yapi ve Kredi Bankasi A.S. Turkiye Is Bankasi A.S. Turkiye Garanti Bankasi A.S. AB Kazakhstan - Ziraat International Bank JSC Kuveyt Turk Katilim Bankasi A.S Turkiye Ihracat Kredi Bankasi A.S. Turkiye Kalkinma ve Yatirim Bankasi A.S. Fibabanka Anonim Sirketi Vakif Katilim Bankasi A.S. Ziraat Katilim MTN Limited Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi Ziraat Katilim Bankasi A.S. Turkiye Vakiflar Bankasi T.A.O. Ziraat Katilim Varlik Kiralama A.S. The Government Support Ratings (GSRs) of five state-owned banks T.C. Ziraat Bankasi A.S. (Ziraat), Turkiye Vakiflar Bankasi T.A.O. (Vakif), Turkiye Halk Bankasi A.S. (Halk), Turkiye Emlak Katilim Bankasi A.S. (Emlak Katilim) and Vakif Katilim Bankasi A.S. (Vakif Katilim), and of privately owned development bank Turkiye Sinai Kalkinma Bankasi A.S. (TSKB), have been upgraded to 'b+' from 'b-'. The GSRs of three privately owned systemically important banks have also been upgraded to 'b-' from 'ns' (no support). The rating actions follow the upgrade of Turkiye's Long-Term IDR to 'BB-' from 'B+' dated September 6, 2024. The sovereign upgrade reflects improved external buffers evidenced by Turkiye's strengthened foreign-exchange (FX) reserves position, underpinned by reduced financial dollarisation and FX demand, capital inflows and increased access to external borrowing. Positive real interest rates, low current account deficits and the orderly and gradual decline in FX-protected deposits will likely support the durability of the improvement in external buffers. The sovereign upgrade also considers Turkiye's reduced contingent liabilities, partly reflecting the decline in FX-protected deposits. These factors have resulted in a significant reduction in near-term financial stability risks evidenced by the banks' increased external market access in recent months, lower risk premiums, the elimination of banking sector FX swaps with the central bank and the gradual decline in FX and FX-protected deposits. The latter fell to 39% and 9% of banking sector deposits, respectively, at end-August 2024, from 42% and 26% at end-August 2023. Consequently, its view of the likelihood of government intervention in the banking system has reduced to the point that Fitch no longer consider it appropriate to notch Turkish banks' LTFC IDRs one notch below Turkiye's LTFC IDR (the exception has been the policy bank, Turkiye Kalkinma ve Yatirim Bankasi A.S. (TKYB), which has been equalised with the sovereign). This approach has, hitherto, reflected its view of a higher likelihood of government intervention in the banking system than the of a sovereign default. Along with the sovereign upgrade, the removal of the one notch for government intervention risk drives the two-notch upgrade of seven foreign-owned support driven banks' LTFC IDRs to 'BB-' from 'B'. The banks include: Denizbank A.S. (Denizbank), ING Bank A.S. (INGBT), Kuveyt Turk Katilim Bankasi A.S (Kuveyt Turk), QNB Finansbank A.S. (QNBF), Turk Ekonomi Bankasi A.S. (TEB), Turkiye Finans Katilim Bankasi A.S. (Turkiye Finans) and Turkiye Garanti Bankasi A.S. (Garanti BBVA) as well as three large privately owned banks (VR-driven) Akbank T.A.S.(Akbank), Turkiye Is Bankasi A.S. (Isbank) and Yapi ve Kredi Bankasi A.S. (YKB). The Outlooks are Stable mirroring the sovereign. The LTFC IDRs of two state-owned development banks, Turkiye Ihracat Kredi Bankasi A.S. (Turk Eximbank) and TKYB, were upgraded to 'BB-' as a result of the upward revision of their GSRs, reflecting the sovereign's stronger ability to provide support. The LTFC IDRs of Halk; Vakif Katilim and Emlak Katilim have been upgraded to 'B+' from 'B-' following the upgrade of their GSRs. The Outlooks on all banks' IDRs have been revised to Stable mirroring the sovereign, excluding Halk, which remains on RWN. Also, the LTFC IDRs of the two state-owned banks Ziraat and Vakif and privately owned development bank TSKB have been upgraded to 'B+' from 'B' following the upgrade of their VRs. The Outlooks are Positive, reflecting the improving operating environment and the impact of this on their business profiles. Also, five small privately owned Turkish banks, with LTFC IDRs driven by VRs, have been upgraded to 'B' from 'B-', including Albaraka Turk Katilim Bankasi A.S. (Albaraka), Arap Turk Bankasi A.S. (ATB), Anadolubank A.S. (Anadolu), Fibabanka Anonim Sirketi (Fiba) and Sekerbank T.A.S. (Seker). The Outlook on Albaraka has been revised to Stable, while the remaining banks remained on a Positive Outlook. Fitch has also placed the VRs of five participation banks on Rating Watch Positive (RWP), including Turkiye Finans and Kuveyt Turk (BB-/Stable), and Emlak Katilim, Vakif Katilim (B+/Stable) and Ziraat Katilim (B+/Positive). All banks' National Ratings (NRs) are unaffected by these rating actions and may be reviewed once and if its NR equivalency analysis results in different relative creditworthiness across Turkish issuers. Key Rating Drivers VRs (Akbank; ATB; Anadolubank; Denizbank; Fiba; Emlak Katlim, Ziraat Katilim, INGBT; Kuveyt Turk; Albaraka; Vakif Katilim; QNBF; Ziraat; TEB; Turkiye Finans; Garanti BBVA; Isbank; TSKB; Vakif; and YKB) The VR upgrades capture the improvement in the operating environment as reflected in the revision of the operating environment score for Turkish banks to 'b+'/Positive from 'b'/Positive. This reflects the reduction in macro-economic and financial stability risks and external financing pressures on banks' standalone credit profiles, supported by policy normalisation and greater exchange-rate stability, investor confidence and external market access, notwithstanding the still-high inflation, slowing economic growth, the high interest-rate environment and a still challenging macroprudential environment. The VRs of the four large, domestic systemically important banks, Akbank, Garanti BBVA, Isbank and YKB, have been upgraded to 'bb-' from 'b+'. At this rating level, their VRs remain one notch above the 'b+' operating environment score, reflecting their significant FC liquidity buffers, strong external market access, and solid business profiles, evidenced by generally resilient financial metrics and significant domestic franchises (market shares by total assets at 8%-10% at end-1H24). The VRs of the two large state-owned commercial banks, Ziraat and Vakif, have been upgraded to 'b+' from 'b'. As the largest state-owned banks in Turkiye, Fitch views their credit profiles and the strength of their capital and FC liquidity buffers as commensurate with, but not above, the risks of the Turkish operating environment, notwithstanding their significant market shares (ranked first and second by total assets, respectively). The banks' VRs also consider their reasonable asset quality, above peers' risk appetite - albeit this has reduced slightly in recent months - and below sector-average profitability. The VRs of Denizbank, INGBT, QNBF and TEB, four mid-sized foreign owned banks, have been upgraded to 'b+' from 'b'. The upgrades reflect their moderate franchises and record of adequate profitability, ordinary support in the case of capitalisation and FC liquidity, and asset quality, which Fitch views as only commensurate with the risks of the operating environment. The VRs of Albaraka, Anadolubank, Fiba, Seker and ATB have been upgraded to 'b' from 'b-'. This reflects its view that the improvement in operating environment conditions will strengthen the banks' standalone creditworthiness and support generally reasonable financial metrics, despite their limited franchises. The upgrades also consider below sector-average leverage ratios in the case of Albaraka and Fiba. The VR of TSKB, the privately owned development bank, has been upgraded to 'b+' from 'b', reflecting its view that the bank's standalone credit profile is commensurate with Turkish operating-environment risks. The bank's VR considers its niche policy role and development focus, fairly consistent performance and adequate capitalisation and FC liquidity, but also its highly dollarised balance sheet. The RWP on the 'b-' VRs of Turkiye Finans, Kuveyt Turk, Emlak Katilim, Vakif Katilim and Ziraat Katilim reflects the likely positive impact of the improvement in operating environment conditions on the banks' business and financial profiles amid a reduction in macro stability risks. Fitch plans to resolve the RWP on the VRs before end-2024. LONG-TERM IDRs, GSRs AND SENIOR DEBT RATINGS OF STATE-OWNED COMMERCIAL BANKS AND DEVELOPMENT BANKS (Ziraat; Vakif; Vakif Katilim; TSKB; Turk Eximbank; TKYB; Emlak Katilim and Halk) The LTFC IDRs of Ziraat, Vakif and TSKB, have been upgraded to 'B+' from 'B' following the upgrade of their VRs. At the same time, their GSRs have also been upgraded to 'b+' from 'b-'. The LTFC IDRs of Vakif Katilim, Emlak Katilim and Halk have been upgraded to 'B+' from 'B-' following the upgrade of their GSRs to 'b+' from 'b-'. Nevertheless, the banks' GSRs remain one notch below the sovereign LTFC IDR despite a high propensity to provide support - given the banks' state ownership (except for TSKB, privately owned), policy roles (Ziraat and TSKB), systemic importance (Ziraat and Vakif), state-related or state-guaranteed funding (TSKB), the strategic importance of participation banking to the authorities (Emlak Katilim, Vakif Katilim) and the record of capital support (excluding TSKB). This reflects the sovereign's still moderate, although improved, reserves position relative to the banks' material sizes. The Outlooks on Ziraat, Vakif and TSKB remain Positive, and the remaining banks' Outlooks have been revised to Stable. Fitch has maintained Halk's ratings on Rating Watch Negative (RWN) following the upgrade of its LTFC IDR, reflecting the material risk of the bank becoming subject to a fine or other punitive measure as a result of ongoing US legal proceedings, and uncertainty over the sufficiency and timeliness of support from the authorities, if needed. Fitch expects to resolve the RWN once there is clarity on the outcome of the US investigations and the implications this may have for the bank. Fitch may maintain the RWN for longer than six months if the US investigations are extended for a longer period. The LTFC IDRs of TKYB and Turk Eximbank are driven by their GSRs and have been upgraded to 'BB-', from 'B+' (TKYB) and 'B' (Turk Eximbank), respectively. The Stable Outlook on both banks reflects that on the sovereign. TKYB's 'BB-' LTFC IDR continues to be equalised with the sovereign rating at the higher sovereign rating level, reflecting the bank's small size relative to sovereign resources, still largely treasury-guaranteed funding base and the medium-term tenor of its non-guaranteed funding, as a result of which its potential need for support in the near term should be limited. In addition, Turk Eximbank's GSR has been upgraded by two notches, to 'bb-'. As a result, and notwithstanding its considerably larger balance sheet and volumes of external market funding relative to the sovereign, it is also now equalised with Turkiye's sovereign rating. The two-notch upgrade reflects the strengthening in the sovereign's financial flexibility in FC, and considers Turk Eximbank's strategic policy role as the country's export credit agency. The senior unsecured debt/sukuk ratings of Ziraat, Vakif, Turk Eximbank, Ziraat Katilim (issued through its SPV) and TSKB have been upgraded in line with the banks' LTFC IDRs. The LT Local-Currency (LC) IDRs of state-owned commercial banks (Ziraat, Vakif, Halk, Emlak Katilim and Vakif Katilim), development banks (TKYB and Eximbank) and privately owned development bank TSKB, are driven by government support and have been upgraded to 'BB-' from 'B+' with Stable Outlooks, in line with the sovereign LTLC IDR, and remain one notch above their LTFC IDRs (except for Eximbank and TKYB). Halk's LTLC IDR remains on RWN due to the US legal case. TSKB's Shareholder Support Rating (SSR) has been upgraded to 'b+' from 'b-' following the upgrade of its parent, Isbank, to 'BB-'/Stable. It remains one notch below its parent's rating reflecting TSKB's niche business model and Isbank group's only 51.4% stake in the bank. All banks' Short-Term (ST) IDRs have been affirmed at 'B', which is the only possible option for LT IDRs in the 'BB- and B' rating categories. Halk's ST IDR remains on RWN. IDRs, GSRs AND SENIOR UNSECURED DEBT RATINGS OF PRIVATELY OWNED TURKISH BANKS (Akbank; Isbank and YKB) The 'BB-' LTFC and LTLC IDRs of Akbank; Isbank and YKB are driven by their VRs and are in line with Turkiye's LTFC IDR. The banks' VRs of 'bb-', one notch above the 'b+' operating environment score, reflect their significant FC liquidity buffers, resilient financial metrics and solid domestic franchises. The revision of the Outlooks on the banks to Stable from Positive reflects the sovereign outlook. The senior unsecured debt ratings of Akbank, Isbank and YKB have been upgraded in line with their LTFC IDRs. The banks' 'B' ST IDRs are the only possible option for LT IDRs in the 'BB-' rating category. The GSRs of Akbank, Isbank and YKB have been upgraded to 'b-' from 'ns', reflecting the improvement in the sovereign's external finances and financial flexibility to provide support in FC along with the banks' systemic importance. Still, their GSRs remain three notches below the sovereign LTFC IDR given Turkiye's still modest reserves and the banks' private ownership. IDRs, SSRs AND SENIOR UNSECURED DEBT RATINGS OF FOREIGN-OWNED BANKS (Garanti BBVA; INGBT; QNBF; TEB; Denizbank; Kuveyt Turk and Turkiye Finans) The LTFC IDRs of INGBT, QNBF; TEB; Denizbank; Kuveyt Turk and Turkiye Finans are driven by potential shareholder support based on their strategic importance, to varying degrees, integration, roles within their respective groups and, common branding and legal commitments in some cases. At the 'BB-' level, Garanti BBVA's LTFC IDR is underpinned by its VR. The upgrade of the seven banks' LTFC IDRs to 'BB-', in line with Turkiye's LTFC IDR and Country Ceiling, reflects Fitch's view of a reduction in government intervention risk for Turkish banks given the improvement in Turkiye's external finances. The LTLC IDRs of these banks are in line with their LTFC IDRs. The Stable Outlooks on all foreign-owned banks' IDRs mirror those on the sovereign. The banks' LT senior debt ratings, where assigned (Garanti BBVA, QNBF, Denizbank, TEB), are aligned with their LTFC IDRs. The Recovery Rating of the notes is 'RR4', reflecting average recovery prospects in a default. The banks' 'B' ST IDRs are the only possible option mapping to LT IDRs in the 'BB-' rating category. LONG-TERM IDRs AND SENIOR DEBT RATINGS OF SMALL PRIVATELY OWNED TURKISH BANKS (Albaraka; ATB; Anadolubank; Fiba and Seker) The IDRs of the five small, privately owned Turkish banks, are driven by their VRs and have been upgraded to 'B' from 'B-', reflecting the improvement in the operating environment. The Outlook on Albaraka has been revised to Stable while the Outlooks remain Positive for ATB, Anadolubank, Fiba and Seker, reflecting the outlook on the operating environment and its expectation that this should positively affect the banks' intrinsic credit profiles, and particularly their financial and business profiles, over the medium term. The banks' 'B' ST IDRs have been affirmed at 'B', the only possible option for LT IDRs in the 'B' rating category. The banks' GSRs of 'ns' reflect its view that state support cannot be relied upon, in case of need, given the banks' limited systemic importance. In ATB's case, support from shareholders, while possible, also cannot be relied upon given the political situation in Libya. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade All Banks' VRs All banks' VRs are sensitive to a weakening in the operating environment beyond its base case. All banks' VRs are sensitive to a sovereign downgrade, although this is not its base case. The 'bb-' VRs of Akbank, Garanti BBVA, Isbank and YKB would also be downgraded on a material erosion in the banks' capital and FC liquidity for example, due to a weakening in financial performance and asset quality. The 'b+' VRs of Ziraat, Vakif and TSKB are primarily sensitive to the Turkish operating environment. Also, Ziraat and Vakif's VRs are potentially sensitive to government influence over their management of balance sheets and particularly if this increases pressures on the banks' risk profiles. The VRs could be downgraded due to a material erosion of the banks' FC liquidity buffers, or of their capital buffers, if not offset by government support. The 'b+' VRs of Denizbank, QNBF, INGBT and TEB are also primarily sensitive to the operating environment and could also be downgraded in case of a material deterioration in their FC liquidity and capital buffers, potentially due to a weakening in financial performance and asset quality, if not offset by shareholder support. The 'b' VRs of Albaraka, ATB, Anadolubank, Fiba and Seker are also primarily sensitive to a weakening in the operating environment as well as to the erosion of their capital buffers most likely due to asset-quality weakening or pressure on profitability and FC liquidity positions. The 'b-' VRs of Kuveyt Turk, TFKB, Emlak Katilim, Vakif Katilim and Ziraat Katilim are sensitive to a multi-notch sovereign downgrade. Halk's VR could also be downgraded if, as a result of the US investigations, it becomes subject to a fine or other punitive measure that materially weakens its solvency or negatively affects its standalone credit profile. The removal of the bank's rating from RWN is dependent upon increased certainty that the outcome of the investigations will not materially weaken Halk's capital, or other aspects of its credit profile. LT IDRs AND GSRs OF TKYB AND TURK EXIMBANK AND SENIOR UNSECURED DEBT RATING OF TURK EXIMBANK The LT IDRs and GSRs of Turk Eximbank and TKYB are primarily sensitive to a sovereign downgrade, but also to a change in the ability or propensity of the authorities to provide support. TKYB's GSR could be downgraded if the bank's proportion of non-guaranteed funding increases materially - particularly if Fitch believes this to be indicative of a weakening in TKYB's policy role - or if its balance-sheet size sharply increases relative to sovereign resources. Turk Eximbank's GSR could be downgraded in case of a material weakening in the sovereign's ability to provide support in FC or in its policy role, but this is not its base case. The banks' ST IDRs are sensitive to a multi-notch downgrade of their respective IDRs. Turk Eximbank's senior unsecured debt ratings are sensitive to a negative change in its IDRs. LONG-TERM IDRs, GSRs, SSR (TSKB) AND SENIOR UNSECURED DEBT RATINGS OF STATE-OWNED COMMERCIAL AND PARTICIPATION BANKS AND DEVELOPMENT BANKS (Ziraat, Vakif, Halk, Vakif Katilim, Emlak Katilim and TSKB) All six banks' GSRs are sensitive to a sovereign downgrade and to a weakening in the ability and propensity of the authorities to provide support (not its base case). The LTFC IDRs of Ziraat, Vakif and TSKB are sensitive to a downgrade of both their VRs and GSRs. The banks' LTFC IDRs would only be downgraded if their VRs and GSRs were simultaneously downgraded. The LTFC IDRs of Halk, Vakif Katilim and Emlak Katilim are sensitive to a change in their GSRs. The RWN on Halk's IDRs reflects uncertainty surrounding the sufficiency and timeliness of support from the Turkish authorities in case of the bank becoming subject to a fine or other punitive measure as a result of the US legal proceedings. The LTLC IDRs of Ziraat, Halk, Vakif, Vakif Katilim, Emlak Katilim and TSKB are primarily sensitive to a downgrade of the sovereign's LTLC IDR, and also a change in the ability or propensity of the authorities to provide support in LC. TSKB's SSR is sensitive to a change in Isbank's LTFC IDR, Fitch's view of the parent's ability and propensity to provide support and the strategic importance of TSKB to its parent. All banks' senior unsecured debt ratings, where relevant, are primarily sensitive to changes in their respective IDRs. ST IDRs are sensitive to multi-notch downgrade of their respective IDRs. LONG-TERM IDRs AND SENIOR UNSECURED DEBT RATINGS OF PRIVATELY OWNED TURKISH BANKS (Akbank, Isbank, YKB, Albaraka, Seker, Fiba, ATB and Anadolubank) The IDRs of all privately owned Turkish banks are sensitive to negative changes in their respective VRs. In the case of Akbank, Isbank and YKB, which have VRs are at the sovereign level, they are also sensitive to a sovereign downgrade. An increase in its view of government intervention risk would likely also lead to downgrades of the banks' LTFC IDRs, although this is not its base case. The banks' senior unsecured debt ratings, where relevant, are sensitive to changes in their respective IDRs. ST IDRs are sensitive to a multi-notch downgrade of their respective IDRs. LONG-TERM IDRs, SSRs AND SENIOR UNSECURED DEBT RATINGS OF FOREIGN-OWNED BANKS (Garanti BBVA, INGBT, QNBF, TEB, Deniz, Kuveyt Turk, Turkiye Finans) A sovereign downgrade or an increase in its view of government intervention risk would likely lead to downgrades of the seven foreign-owned banks' SSRs and, therefore, LT IDRs, although this is not its base case. The banks' SSRs are also sensitive to Fitch's view of their respective shareholders' ability and propensity to provide support. The banks' senior unsecured debt ratings, where assigned, are sensitive to changes in their IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade LT IDRS AND GSRs OF TKYB AND TURK EXIMBANK AND SENIOR UNSECURED DEBT RATING OF TURK EXIMBANK A positive change in Turkiye's sovereign ratings would likely lead to similar actions on these banks' LT IDRs and GSRs. Turk Eximbank's senior unsecured debt ratings are sensitive to a positive change in its IDRs. VRs, GSRS, LT IDRs of Ziraat, Vakif, Halk, TSKB, Emlak Katilim, Vakif Katilim and Ziraat Katilim (VR only), and SENIOR UNSECURED DEBT RATINGS of Ziraat, Vakif and TSKB; SSR of TSKB Upside for banks' VRs (Ziraat, Vakif, Halk and TSKB only) is constrained by their exposure to Turkish operating environment risks. An upgrade of the operating environment score, which could result from lower market- or exchange-rate volatility, a sustainable decline in inflation and a sustained improvement in investor sentiment, could support VR upgrades, particularly if combined with a strengthening in the banks' capital buffers and earnings. A positive change in the sovereign's IDRs would likely lead to an upgrade of GSRs and similar actions on these banks' IDRs. VR upgrades (Emlak Katilim, Vakif Katilim and Ziraat Katilim only) are primarily sensitive to improvement in the banks' business profiles, in the context of a stronger operating environment, combined with a strengthening of their FC liquidity and capital buffers. All seven banks' GSRs could be upgraded if Fitch considers the government's ability to support the banks in FC to have strengthened. TSKB's SSR is sensitive to a positive change in Isbank's ability to provide support, although this is not its base case, given the Stable Outlook on the parent bank's ratings, and also its propensity. The banks' senior unsecured debt ratings are primarily sensitive to changes in their IDRs. VRs, GSRs, IDRs of Akbank, Isbank, YKB, Albaraka, Seker, Fiba, Anadolubank and ATB and SENIOR UNSECURED DEBT of Akbank, Isbank and YKB Akbank, Isbank and YKB's IDRs would be upgraded if the banks' VRs were upgraded, which would require an upgrade of the sovereign rating, while the banks maintain a stable financial profile. Albaraka, Seker, Fiba and Anadolu's VRs are primarily sensitive to the strength of their capital buffers (including net of forbearance) and FC liquidity buffers in the context of improving operating environment conditions. VR upgrades for Albaraka, Seker, ATB, Fiba and Anadolu would also require a strengthening of the banks' business profiles. VR upgrades for Akbank, Isbank and YKB would require an upgrade of the sovereign rating, likely accompanied by an upward revision of the operating environment score, while maintaining a healthy financial profile and capital and FC liquidity buffers. The GSRs of Akbank, Isbank and YKB could be upgraded from 'b-' if Fitch considers the government's ability to support the banks in FC to have strengthened. Albaraka, Seker, Fiba, ATB and Anadolubank's GSRs of 'ns' are unlikely to be upgraded given their limited systemic importance. The banks' senior unsecured debt ratings / sukuk, where relevant, are sensitive to positive changes in their IDRs. VRs, IDRS AND SSRs OF FOREIGN-OWNED BANKS (Garanti BBVA; INGBT; QNBF; TEB; Denizbank; Kuveyt Turk and Turkiye Finans, SENIOR UNSERCURED DEBT OF Garanti BBVA; QNBF; TEB; Denizbank A positive change in Turkiye's LT IDRs would likely lead to similar actions on the banks' SSRs and LT IDRs. An upward revision of Turkiye's Country Ceiling could also lead to an upgrade on the banks' SSRs and LT IDRs. A VR upgrade for Garanti BBVA would require an upgrade of the sovereign rating, likely leading to an upward revision of the operating environment score, while maintaining a healthy financial profile. VR upgrades for the other foreign-owned banks would require an improvement in their capital buffers and earnings performance combined with a strengthening of their business profiles. VR upgrades at Kuveyt Turk and TFKB, which are on RWP, will primarily depend on Fitch's assessment of the banks' business profiles and the strength of their FC liquidity and capital buffers in the context of the stronger operating environment. The banks' senior unsecured debt ratings are primarily sensitive to positive changes in their IDRs. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS SUBORDINATED DEBT RATINGS (QNBF, Garanti BBVA, TEB, Kuveyt Turk, Akbank, Isbank, YKB, Seker, Fiba and Vakif) The subordinated notes' ratings of foreign-owned QNBF, Garanti BBVA, TEB and Kuveyt Turk (the latter issued through its SPV, KT21 T2 Sukuk) have been upgraded to 'B+' from 'B-' following the two-notch upgrade of their LTFC IDR anchor ratings. The notching for the subordinated notes includes one notch for loss severity and zero notches for non-performance risk (relative to the banks' anchor ratings). The one notch, rather than default two notches, for loss severity reflects its view that institutional support (as reflected in the banks' LTFC IDRs) helps mitigate losses. The Recovery Rating of the notes is 'RR5', reflecting below-average recovery prospects in a default. The subordinated notes' ratings of Akbank, Isbank and YKB have been upgraded to 'B' from 'B-' following the one-notch upgrade of their VR anchor ratings. The subordinated notes' ratings are notched twice from their VR anchor ratings for loss severity, reflecting its expectation of poor recoveries in case of default, in line with Fitch criteria's baseline approach. The subordinated notes' ratings of Vakif have been upgraded to 'B-' from 'CCC+' following the one-notch upgrade of the bank's VR anchor rating. The subordinated debt ratings of Seker and Fiba, have been upgraded to 'CCC+' from 'CCC' following the one-notch upgrade of the banks' VR anchor ratings. The Recovery Rating of these notes is 'RR6'. Banks' AT1 notes (where relevant) have been upgraded by one notch due to the upgrade of their anchor ratings including at Akbank and YKB (to 'B-' from 'CCC+'), and at Vakif and TSKB (to 'CCC+' from 'CCC'). The notes are rated three notches below their VRs, comprising two notches for loss severity, given the notes' deep subordination, and one notch for incremental non-performance risk, given their full discretionary, non-cumulative coupons. In accordance with the Bank Rating Criteria, Fitch has applied three notches from the banks' VR, instead of the baseline four notches, as VRs are either at the 'BB-' threshold (Akbank, YKB) or below it (Vakif, TSKB). The expected rating of Sekerbank's AT1 has been upgraded to 'CCC(EXP)' from 'CCC-(EXP) following the one-notch upgrade of the bank's VR anchor rating. Fitch has assigned ex-government support or 'xgs' ratings of 'B-(xgs)' LTFC IDR and LTLC IDR to Emlak Katilim, Halk and Vakif Katilim. The ex-government support ratings exclude assumptions of extraordinary government support from the underlying ratings. ST FC and LC IDRs (xgs) have also been assigned in accordance with the banks' respective LT FC and LC IDRs (xgs) and Fitch's short-term rating mapping. Halk's xgs ratings are placed on RWN, in line with its VR. Emlak Katilim and Vakif Katilim's LT xgs ratings are placed on RWP, in line with their VRs. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES SUBORDINATED DEBT RATINGS (Garanti BBVA, Akbank, Isbank, YKB, QNBF, TEB, Kuveyt Turk, Seker, Fiba) Banks' subordinated debt ratings, where relevant, are sensitive to a change of their respective anchor ratings. They are also sensitive to a revision in Fitch's assessment of potential loss severity in case of non-performance. Emlak Katilim, Halk and Vakif Katilim's Long-Term IDR (xgs) ratings are sensitive to changes in the bank's VR. The banks' Short-Term IDR (xgs) ratings are primarily sensitive to a change in their Long-Term IDR (xgs) and could be downgraded if the latter are downgraded, and map to a lower short-term rating in accordance with Fitch's criteria. SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS Ziraat Katilim's IDRs, driven by its SSR, are equalised with those of its parent, Ziraat, reflecting the bank's strategic importance and role as a core subsidiary of the group given its Islamic bank status, and have been upgraded to 'B+' (LTFC IDR) and 'BB-' (LTLC IDR), respectively. The Outlook on the LTFC IDR is Positive, while the Outlook on the LTLC IDR is Stable, mirroring the Outlooks that on its parent. Fitch has upgraded AB Kazakhstan - Ziraat International Bank JSC's (KZI) LTFC and LTLC IDRs to 'B+' from 'B'. Fitch has also upgraded the bank's National Long-Term Rating to 'BBB(kaz)' from 'BB+(kaz)'. The Outlooks are Stable. KZI's 'B+' LT IDRs are driven by potential support from the parent bank, Ziraat, as reflected by the bank's 'b+' SSR. In Fitch's view, Ziraat has a high propensity to support KZI. Beyond high operational integration, this is due to its majority ownership and high reputational risk for the parent in case of the potential default of KZI, given the banks' common branding and Ziraat's broader international presence. In addition, the cost of potential support to Ziraat is low, considering the subsidiary's small size relative to the parent's (end-1H24: equal to 0.4% of the group's consolidated assets), and a record of considerable equity support in the past (2022: 21% of risk-weighted assets). SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES Ziraat Katilim's IDRs are sensitive to a change in its parent's rating or propensity to provide support. A negative rating action on Ziraat's LTFC IDR may result in a corresponding rating action on KZI's ratings. In addition, KZI's ratings could be downgraded if Ziraat's propensity to support its subsidiary weakens considerably. KZI's ratings could be upgraded on a multi-notch upgrade of the parent's LTFC IDR. KZI's National Rating is sensitive to a rating action on its LTLC IDR and to reassessment by Fitch of the bank's creditworthiness relative to local peers'. VR ADJUSTMENTS The operating-environment score of 'b+' for Turkish banks is below the 'bb' category implied score due to the following adjustment reason: macroeconomic volatility (negative), which reflects high inflation, high dollarisation and high risk of FX movements in Turkiye. The business profile scores of 'b+' for Vakif, QNBF and Denizbank are below the 'bb' category implied scores, due to the following adjustment reason: business model (negative). This reflects the banks' business model concentration on the high-risk Turkish market. ATB's asset quality score of 'b' is below the category implied score of 'bb', due to the following adjustment reason: concentrations (negative). Emlak Katilim's asset quality score of 'b-' is below the category implied score of 'bb', due to the following adjustment reason: underwriting standards and growth (negative). Kuveyt Turk's earnings and profitability score of 'b' is below the category-implied score of 'bb', due to the following adjustment reason: risk-weight calculation (negative). TSKB's earnings and profitability score of 'b+' is below the category-implied score of 'bb', due to the following adjustment reason: earnings stability (negative). Emlak Katilim's earnings and profitability score of 'b-' is below the category-implied score of 'bb', due to the following adjustment reason: earnings stability (negative). Isbank's earnings and profitability score of 'bb-' is above the category-implied score of 'b', due to the following adjustment reason: revenue diversification (positive). The funding and liquidity scores of 'bb-' for Akbank, Isbank and YKB are above the 'b' category implied scores, due to the following adjustment reason: liquidity coverage (positive). The funding and liquidity scores of 'bb-' for Garanti BBVA, Denizbank, ING, QNBF and TEB are above the 'b' category implied scores, due to the following adjustment reason: liquidity access and ordinary support (positive). Public Ratings with Credit Linkage to other ratings State-owned banks have ratings that are linked to the Turkish sovereign rating. Turkish foreign-owned banks have ratings that are linked to their respective parent banks' ratings. TSKB has ratings that are linked to the Turkish sovereign rating and Isbank. Ziraat Katilim's ratings are driven by support from Ziraat. ESG Considerations All Turkish Banks (excluding the three development banks, Turk Eximbank, TKYB and TSKB) The ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the banks' credit profiles and is relevant to the banks' ratings in combination with other factors. State-owned Turkish banks In addition, the state-owned commercial banks - Ziraat, Vakif, Emlak Katilim, Vakif Katilim and Ziraat Katilim - have ESG Relevance Scores of '4' for Governance Structure due to potential government influence over their boards' effectiveness and management strategy in the challenging Turkish operating environment, which has a negative impact on the banks' credit profiles, and is relevant to the ratings in conjunction with other factors. Halk has an ESG Relevance Score of '5' for Governance Structure, reflecting the high legal risk of a large fine, which drives the RWN on the bank. It also considers potential government influence over the board's effectiveness in the challenging Turkish operating environment. Halk has an ESG Relevance Score of '4' for Management Strategy due to potential government influence over its management strategy in the challenging Turkish operating environment, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Islamic Banks (Emlak Katilim, Vakif Katilim, Kuveyt Turk, TFKB, Ziraat Katilim and Albaraka) Islamic banks' ESG Relevance Score of '4' for Governance Structure reflects their Islamic banking nature where their operations and activities need to comply with sharia principles and rules, which entails additional costs, processes, disclosures, regulations, reporting and sharia audit. This has a negative impact on their credit profiles and is relevant to the ratings in conjunction with other factors. Islamic banks have an ESG Relevance Score of '3' for Exposure to Social Impacts, above sector guidance for an ESG Relevance Score of '2' for comparable conventional banks, which reflects that Islamic banks have certain sharia limitations embedded in their operations and obligations, although this only has a minimal credit impact on Islamic banks. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Turk Ekonomi Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Shareholder Support bb- Upgrade b senior unsecured LT BB- Upgrade RR4 B subordinated LT B+ Upgrade RR5 B- senior unsecured ST B Affirmed B AKBANK T.A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability bb- Upgrade b+ Government Support b- Upgrade ns senior unsecured LT BB- Upgrade RR4 B subordinated LT B Upgrade RR6 B- subordinated LT B- Upgrade CCC+ senior unsecured ST B Affirmed B Turkiye Is Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability bb- Upgrade b+ Government Support b- Upgrade ns senior unsecured LT BB- Upgrade RR4 B subordinated LT B Upgrade RR6 B- senior unsecured ST B Affirmed B Turkiye Ihracat Kredi Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Government Support bb- Upgrade b senior unsecured LT BB- Upgrade RR4 B senior unsecured ST B Affirmed B Arap Turk Bankasi A.S. LT IDR B Upgrade B- ST IDR B Affirmed B LC LT IDR B Upgrade B- LC ST IDR B Affirmed B Viability b Upgrade b- Government Support ns Affirmed ns Ziraat Katilim Varlik Kiralama A.S. senior unsecured LT B+ Upgrade RR4 B Kuveyt Turk Katilim Bankasi A.S LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b- Rating Watch On b- Shareholder Support bb- Upgrade b Turkiye Garanti Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability bb- Upgrade b+ Shareholder Support bb- Upgrade b senior unsecured LT BB- Upgrade RR4 B subordinated LT B+ Upgrade RR5 B- senior unsecured ST B Affirmed B Ziraat Katilim Bankasi A.S. LT IDR B+ Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b- Rating Watch On b- Shareholder Support b+ Upgrade b Ziraat Katilim MTN Limited senior unsecured LT B+ Upgrade RR4 B senior unsecured ST B Affirmed B Yapi ve Kredi Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability bb- Upgrade b+ Government Support b- Upgrade ns senior unsecured LT BB- Upgrade RR4 B subordinated LT B Upgrade RR6 B- junior subordinated LT B- Upgrade CCC+ senior unsecured ST B Affirmed B Turkiye Vakiflar Bankasi T.A.O. LT IDR B+ Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Government Support b+ Upgrade b- senior unsecured LT B+ Upgrade RR4 B subordinated LT CCC+ Upgrade CCC subordinated LT B- Upgrade RR6 CCC+ senior unsecured ST B Affirmed B Anadolubank A.S. LT IDR B Upgrade B- ST IDR B Affirmed B LC LT IDR B Upgrade B- LC ST IDR B Affirmed B Viability b Upgrade b- Government Support ns Affirmed ns Sekerbank T.A.S. LT IDR B Upgrade B- ST IDR B Affirmed B LC LT IDR B Upgrade B- LC ST IDR B Affirmed B Viability b Upgrade b- Government Support ns Affirmed ns subordinated LT CCC+ Upgrade RR6 CCC Subordinated LT CCC(EXP)Upgrade CCC-(EXP) Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi LT IDR B+ Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Government Support b+ Upgrade b- senior unsecured LT B+ Upgrade RR4 B subordinated LT B- Upgrade RR6 CCC+ senior unsecured ST B Affirmed B Turkiye Emlak Katilim Bankasi A.S. LT IDR B+ Upgrade B- ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b- Rating Watch On b- Government Support b+ Upgrade b- LC ST IDR (xgs) B(xgs)New Rating LC LT IDR (xgs) B-(xgs)New Rating ST IDR (xgs) B(xgs) New Rating LT IDR (xgs) B-(xgs)New Rating Fibabanka Anonim Sirketi LT IDR B Upgrade B- ST IDR B Affirmed B LC LT IDR B Upgrade B- LC ST IDR B Affirmed B Viability b Upgrade b- Government Support ns Affirmed ns subordinated LT CCC+ Upgrade RR6 CCC Turkiye Kalkinma ve Yatirim Bankasi A.S. LT IDR BB- Upgrade B+ ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Government Support bb- Upgrade b+ Denizbank A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Shareholder Support bb- Upgrade b senior unsecured LT BB- Upgrade RR4 B senior unsecured ST B Affirmed B Turkiye Halk Bankasi A.S. LT IDR B+ Upgrade B- ST IDR B Rating Watch Maintained B LC LT IDR BB- Upgrade B+ LC ST IDR B Rating Watch Maintained B Viability b- Rating Watch Maintained b- Government Support b+ Upgrade b- LC ST IDR (xgs) B(xgs)New Rating LC LT IDR (xgs) B-(xgs)New Rating ST IDR (xgs) B(xgs)New Rating LT IDR (xgs) B-(xgs)New Rating Turkiye Sinai Kalkinma Bankasi A.S. LT IDR B+ Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Government Support b+ Upgrade b- Shareholder Support b+ Upgrade b- senior unsecured LT B+ Upgrade RR4 B subordinated LT CCC+ Upgrade CCC senior unsecured ST B Affirmed B Albaraka Turk Katilim Bankasi A.S. LT IDR B Upgrade B- ST IDR B Affirmed B LC LT IDR B Upgrade B- LC ST IDR B Affirmed B Viability b Upgrade b- Government Support ns Affirmed ns Vakif Katilim Bankasi A.S. LT IDR B+ Upgrade B- ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b- Rating Watch On b- Government Support b+ Upgrade b- LT IDR (xgs) B-(xgs)New Rating ST IDR (xgs) B(xgs) New Rating LC LT IDR (xgs) B-(xgs)New Rating LC ST IDR (xgs) B(xgs) New Rating QNB Finansbank Anonim Sirketi LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Shareholder Support bb- Upgrade b Senior unsecured LT BB- Upgrade RR4 B subordinated LT B+ Upgrade RR5 B- senior unsecured ST B Affirmed B ING Bank A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b+ Upgrade b Shareholder Support bb- Upgrade b KT21 T2 Company Limited subordinated LT B+ Upgrade RR5 B- Albaraka MTN Ltd senior unsecured LT B Upgrade RR4 B- senior unsecured ST B Affirmed B Turkiye Finans Katilim Bankasi A.S. LT IDR BB- Upgrade B ST IDR B Affirmed B LC LT IDR BB- Upgrade B+ LC ST IDR B Affirmed B Viability b- Rating Watch On b- Shareholder Support bb- Upgrade b AB Kazakhstan - Ziraat International Bank JSC LT IDR B+ Upgrade B ST IDR B Affirmed B LC LT IDR B+ Upgrade B Natl LT BBB(kaz) Upgrade BB+(kaz) Shareholder Support b+ Upgrade b ============= U K R A I N E ============= [*] Fitch Hikes 8 Ukrainian LRGs to CCC on Sovereign Rating Action ------------------------------------------------------------------ Fitch Ratings has upgraded eight Ukrainian local and regional governments' (LRGs) Long-Term Local-Currency (LTLC) Issuer Default Ratings (IDRs) to 'CCC' from 'CCC-'. Ratings at this level typically do not carry Outlooks due to their high volatility. The involved entities are: - Kryvyi Rih, City of - Kharkov, City of - Lviv, City of - Odesa, City of - Mykolaiv, City of - Dnipro, City of - Kyiv, City of - Zaporizhzhia, City of Under applicable credit rating agency (CRA) regulations, the publication of the LRG reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from the schedule in order to comply with the CRAs' obligation to issue credit ratings based on all available and relevant information and disclose credit ratings in a timely manner. Fitch interprets this provision as allowing us to publish a rating review in situations where there is a material change in the creditworthiness of the issuer that Fitch believes makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. The next schedule review date for Fitch's rating on Dnipro, Kharkov, Kryvyi Rih, Kyiv, Lviv, Mykolaiv, Odesa and Zaporizhzhia is October 18, 2024, but Fitch believes the developments for the issuer warrant such a deviation from the calendar and its rationale for this is set out in the first part (High weight factors) of the Key Rating Drivers section below. Key Rating Drivers HIGH The upgrade of the IDRs of the cities follows the upgrade of the Ukrainian sovereign on 5 September 2024 (see Fitch Upgrades Ukraine's LTLC IDR to 'CCC+'; Affirms LTFC IDR at 'RD'), as the cities' ratings were capped by the previous sovereign rating. LOW The risk profiles remain 'Vulnerable' as they are not affected by the rating action and all the cities have the key risk factors assessed as 'Weaker', the weakest assessment allowed under Fitch's International Local and Regional Governments Rating Criteria. No changes have been applied to the financial profile of any issuer, which remains 'b' for Dnipro, Kharkov, Kryvyi Rih, Kyiv, Lviv, Mykolaiv, Odesa and Zaporizhzhia. The derivation of the Standalone Credit Profiles is unaffected by the rating action. Fitch will closely monitor the evolution of the situation throughout the Russian-Ukrainian war and will take the appropriate course of action in case of need. ESG - Political Stability and Rights: The invasion by Russia and ongoing full-scale war have severely compromised the cities' political stability and the security outlook. The war is resulting in the death of the cities' inhabitants and extensive property damage, with the aim of changing the cities' government and/or occupying their territory. ESG - Creditor Rights: The protracted war has weakened the cities' ability and willingness to service and repay debt. The cities' liquidity is deteriorating and the Ukrainian sovereign's willingness to allow the use of foreign-currency (FC) reserves for debt service in FC is diminishing, while the costs of preserving the urban and communal functions for the cities are on the rise. Derivation Summary For individual derivation summaries see the latest published rating action commentary on each issuer at www.fitchratings.com. NATIONAL RATINGS Fitch has upgraded the National Ratings of the cities of Dnipro, Kharkov, Kryvyi Rih, Kyiv and Lviv to 'AA(ukr)' from 'A+(ukr)'. The ratings' Outlook is Stable. The 'CCC' LTLC IDR maps to the ratings of 'AA-(ukr)' or 'AA(ukr)'. The cities' diversified revenue base and existing spending flexibility, proven by significant spending cuts in 2022, show that, as in the case of other Ukrainian LRGs, they are in a stronger position than national peers from other asset classes, justifying the highest possible national rating for the given mapping. However, the lack of local economic indicators and the severely constrained ability to develop a reliable rating scenario due to the war do not support the differentiation of national ratings among the rated Ukrainian cities. DEBT RATINGS The ratings of Kyiv's domestic bonds are aligned with the city's LT LC IDR. This is because Fitch views the domestic bonds as direct, unconditional senior unsecured obligations of the city, ranking pari passu with all of its other present and future unsecured and unsubordinated obligations. Key Assumptions Qualitative assumptions and assessments and their respective change since the last review on April 19, 2024 for Dnipro, Kharkov, Kryvyi Rih, Kyiv, Lviv, Mykolaiv, Odesa and Zaporizhzhia and weight in the rating decision: Risk Profile: 'Vulnerable'/unchanged with low weight Revenue Robustness: 'Weaker'/unchanged with low weight Revenue Adjustability: 'Weaker'/unchanged with low weight Expenditure Sustainability: 'Weaker'/unchanged low weight Expenditure Adjustability: 'Weaker'/unchanged with low weight Liabilities and Liquidity Robustness: 'Weaker'/unchanged with low weight Liabilities and Liquidity Flexibility: 'Weaker'/unchanged with low weight Financial Profile: 'b' category /unchanged with low weight Asymmetric Risk: N/A, unchanged with low weight Budget Loans or Ad-Hoc Support: N/A, unchanged with low weight Sovereign Cap: 'CCC+' (for Local Currency), raised with high weight Rating Floor: N/A, unchanged with low weight Quantitative assumptions - issuer-specific: unchanged with low weight Fitch's rating case scenario is irrelevant for ratings that are based on rating definitions; instead, it is an assumption of the issuer's capability (liquidity) and willingness to service it. The assumption applies to all rated Ukrainian cities irrespective of whether direct debt exist currently as Fitch assumes that a need for debt may arise in the short term or debt servicing resulting from the guarantees issued as collateral for the debt of municipal companies may materialise in the short term. Figures as per Fitch's sovereign actual for 2023 and forecast for 2026, respectively (no weights and changes since the last review are included as none of these assumptions were material to the rating action): - GDP per capita (US dollar, market exchange rate): 5,014; 5,333 - Real GDP growth (%): 5.3; 5.0 - Consumer prices (annual average % change): 12.9; 5.8 - General government balance (% of GDP): -19.5; -12.7 - General government debt (% of GDP): 84.4; 103.0 - Current account balance plus net FDI (% of GDP): -2.8; -6.7 - Net external debt (% of GDP): -16.5; 15.1 - IMF Development Classification: EM (emerging market) - CDS Market Implied Rating: n/a RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - An improvement in the city's financial profile resulting from a financial situation stabilisation and stronger liquidity, allowing the SCP to raise to 'ccc+', would lead to an upgrade of the cities' LTLC IDRs, provided that there is no cap by the sovereign rating. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of the LTLC IDR of Ukraine to below 'CCC' would lead to a downgrade of the cities' ratings. - Increased risk of default due to weakened liquidity that could pressure the city's ability to service debt. Public Ratings with Credit Linkage to other ratings The cities' ratings are linked to the ratings of Ukraine. ESG Considerations The cities have an ESG Relevance Score of '5' for Political Stability and Rights to reflect the invasion by Russia and ongoing full-scale war, which has severely compromised the city's political stability and the security outlook. This has a negative impact on the credit profile and is highly relevant to the ratings. The war is resulting in the death of the cities' inhabitants and extensive property damage, with the aim of changing the cities' government and/or occupying their territory. The cities have an ESG Relevance Score of '5' for Creditor Rights to reflect the weakened ability and willingness of the city to service and repay debt. This has a negative impact on the credit profile and is highly relevant to the ratings. The protracted war is resulting in the depletion of liquidity and in diminishing the Ukrainian sovereign's willingness to allow the use of FC reserves for debt service in FC, while the costs of preserving the urban and communal functions for the city are on the rise. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. DISCUSSION NOTE Committee date: September 12, 2024 There was an appropriate quorum at the committee and the members confirmed that they were free from recusal. It was agreed that the data was sufficiently robust relative to its materiality. During the committee no material issues were raised that were not in the original committee package. The main rating factors under the relevant criteria were discussed by the committee members. The rating decision as discussed in this rating action commentary reflects the committee discussion. Entity/Debt Rating Prior ----------- ------ ----- Lviv, City of LC LT IDR CCC Upgrade CCC- Natl LT AA(ukr)Upgrade A+(ukr) Dnipro, City of LC LT IDR CCC Upgrade CCC- Natl LT AA(ukr)Upgrade A+(ukr) Zaporizhzhia, City of LC LT IDR CCC Upgrade CCC- Kyiv, City of LC LT IDR CCC Upgrade CCC- Natl LT AA(ukr)Upgrade A+(ukr) senior unsecured LT CCC Upgrade CCC- Kharkov, City of LC LT IDR CCC Upgrade CCC- Natl LT AA(ukr)Upgrade A+(ukr) Mykolaiv, City of LC LT IDR CCC Upgrade CCC- Kryvyi Rih, City of LC LT IDR CCC Upgrade CCC- Natl LT AA(ukr)Upgrade A+(ukr) Odesa, City of LC LT IDR CCC Upgrade CCC- =========================== U N I T E D K I N G D O M =========================== BRICK LIVE: ReSolve Advisory Named as Administrators ---------------------------------------------------- Brick Live International Limited fka Brick Live INTL Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number: CR-2024-005253, and Ben Woodthorpe and Simon Jagger of ReSolve Advisory Limited were appointed as administrators on Sept 12, 2024. Brick Live, trading name BRICKLIVE, specializes in amusement and recreation activities. Its registered office is at 3 Park Court, Pyrford Road, West Byfleet, Surrey, KT14 6SD. The principal trading address is at Unit 58-59 Brindley Road, Runcorn, WA7 1PF. The joint administrators can be reached at: Ben Woodthorpe Simon Jagger ReSolve Advisory Limited 22 York Buildings, London WC2N 6JU For further information, contact: The Administrators Tel No: 020 3370 3126 Alternative contact: Hashem Kherfan E-mail: hashem.kherfan@resolvegroupuk.com FABLINK GROUP: Interpath Ltd Named as Joint Administrators ---------------------------------------------------------- Fablink Group Holdings Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number: CR-2024-BHM-000549, and Christopher Robert Pole and Ryan Grant of Interpath Ltd were appointed as administrators on Sept 12, 2024. The Fablink Group is a UK based manufacturer specialising in the manufacture of metal pressings, operator cab assemblies, fuel and hydraulic tanks and complex structures as well as 'clean build' of vehicle assemblies. Its principal trading address is at Brewery Farm, Old Northants, NN6 9RL. The joint administrators can be reached at: Christopher Robert Pole Ryan Grant Interpath Ltd 2nd Floor, 45 Church Street Birmingham, B3 2RT For further details, contact: Nusrat Begum Email: Fablink@interpath.com FABLINK UK: Interpath Ltd Named as Joint Administrators ------------------------------------------------------- Fablink UK Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number: CR-2024-BHM-000548, and Christopher Robert Pole and Ryan Grant of Interpath Ltd were appointed as administrators on Sept 12, 2024. The Fablink Group is a UK based manufacturer specialising in the manufacture of metal pressings, operator cab assemblies, fuel and hydraulic tanks and complex structures as well as 'clean build' of vehicle assemblies. Fablink UK's principal trading address is at Unit 29 Lyveden Rd, Brackmills, Northampton, NN4 7ED. The joint administrators can be reached at: Christopher Robert Pole Ryan Grant Interpath Ltd 2nd Floor, 45 Church Street Birmingham, B3 2RT For further details, contact: Nusrat Begum Email: Fablink@interpath.com GLENEVIN LTD: RSM UK Named as Administrators -------------------------------------------- Glenevin Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Leeds, Insolvency and Companies List (ChD), Court Number: CR-2024-000882, and Gareth Harris and Paul Dounis of RSM UK Restructuring Advisory LLP were appointed as administrators on Sept. 6, 2024. Glenevin Ltd is involved in the construction of utility projects for electricity and telecommunications. Its registered office is at 5th Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL. Its principal trading address is at Westwood House 4a, Royston Road, Deans, Livingston, EH4 8AH. The administrators can be reached at: Gareth Harris RSM UK Restructuring Advisory LLP Central Square, 5th Floor 29 Wellington Street, Leeds LS1 4DL -- and -- Paul Dounis RSM UK Restructuring Advisory LLP Third Floor, 2 Semple Street Edinburgh, EH3 8BL Correspondence Address & Contact Details of Case Manager Ross Taylor RSM UK Restructuring Advisory LLP 5th Floor, Central Square 29 Wellington Street, Leeds LS1 4D Tel No: 0113 285 5000 For further details, contact: The Joint Administrators Tel: 0113 285 5000 0131 659 8312 =============== X X X X X X X X =============== [*] BOND PRICING: For the Week September 16 to 20, 2024 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Altice France Holding S 10.500 5/15/2027 USD 38.833 R-Logitech Finance SA 10.250 9/26/2027 EUR 15.000 Solis Bond Co DAC 10.208 9/30/2024 EUR 49.851 Codere Finance 2 Luxemb 11.000 9/30/2026 EUR 44.022 Codere Finance 2 Luxemb 12.750 11/30/2027 EUR 0.888 NCO Invest SA 10.000 12/30/2026 EUR 0.146 Ferralum Metals Group S 10.000 12/30/2026 EUR 33.500 NCO Invest SA 10.000 12/30/2026 EUR 0.372 IOG Plc 13.217 9/20/2024 EUR 4.917 Ilija Batljan Invest AB 10.007 SEK 10.000 Virgolino de Oliveira F 11.750 2/9/2022 USD 0.490 Oscar Properties Holdin 11.270 7/5/2024 SEK 0.051 Immigon Portfolioabbau 10.055 EUR 14.875 Codere Finance 2 Luxemb 13.625 11/30/2027 USD 1.003 Plusplus Capital Financ 11.000 7/29/2026 EUR 8.658 Codere Finance 2 Luxemb 13.625 11/30/2027 USD 1.003 Turkiye Government Bond 10.400 10/13/2032 TRY 48.000 Fastator AB 12.500 9/25/2026 SEK 35.445 Marginalen Bank Bankakt 12.695 SEK 40.002 Virgolino de Oliveira F 10.500 1/28/2018 USD 0.010 Kvalitena AB publ 10.067 4/2/2024 SEK 45.000 Tinkoff Bank JSC Via TC 11.002 USD 42.875 Saderea DAC 12.500 11/30/2026 USD 49.860 Bilt Paper BV 10.360 USD 0.646 Codere Finance 2 Luxemb 11.000 9/30/2026 EUR 44.195 Fastator AB 12.500 9/26/2025 SEK 35.880 UkrLandFarming PLC 10.875 3/26/2018 USD 1.969 Virgolino de Oliveira F 11.750 2/9/2022 USD 0.490 Fastator AB 12.500 9/24/2027 SEK 35.641 Vontobel Financial Prod 21.000 9/27/2024 EUR 24.720 Codere Finance 2 Luxemb 12.750 11/30/2027 EUR 0.888 Privatbank CJSC Via UK 10.250 1/23/2018 USD 3.631 Virgolino de Oliveira F 10.500 1/28/2018 USD 0.010 Privatbank CJSC Via UK 11.000 2/9/2021 USD 0.500 UBS AG/London 17.500 2/7/2025 USD 17.800 Transcapitalbank JSC Vi 10.000 USD 1.450 ACBA Bank OJSC 11.000 12/1/2025 AMD 8.900 Avangardco Investments 10.000 10/29/2018 USD 0.655 Ameriabank CJSC 10.000 2/20/2025 AMD 9.060 Altice France Holding S 10.500 5/15/2027 USD 38.900 Evocabank CJSC 11.000 9/28/2024 AMD 9.431 Sidetur Finance BV 10.000 4/20/2016 USD 0.784 BNP Paribas Emissions- 15.000 9/25/2025 EUR 39.680 Bulgaria Steel Finance 12.000 5/4/2013 EUR 0.216 Elli Investments Ltd 12.250 6/15/2020 GBP 1.171 Privatbank CJSC Via UK 10.875 2/28/2018 USD 5.324 Virgolino de Oliveira F 10.875 1/13/2020 USD 36.000 Virgolino de Oliveira F 10.875 1/13/2020 USD 36.000 Tailwind Energy Chinook 12.500 9/27/2019 USD 1.500 Ukraine Government Bond 11.000 2/16/2037 UAH 30.687 Ventelo Europe Ltd 10.875 6/15/2008 USD 0.000 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.807 Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000 Bilt Paper BV 10.360 USD 0.646 UBS AG/London 14.000 7/31/2025 USD 50.550 Ukraine Government Bond 11.000 4/1/2037 UAH 30.646 Bank Vontobel AG 29.000 4/10/2025 USD 42.900 Societe Generale SA 23.500 3/3/2025 USD 45.740 Leonteq Securities AG 20.000 1/3/2025 CHF 48.260 BNP Paribas Issuance BV 20.000 9/18/2026 EUR 34.040 Societe Generale SA 11.000 7/14/2026 USD 16.000 Societe Generale SA 20.000 7/21/2026 USD 3.400 Societe Generale SA 20.000 1/29/2026 USD 9.800 Societe Generale SA 22.750 10/17/2024 USD 23.750 NTRP Via Interpipe Ltd 10.250 8/2/2017 USD 1.003 HSBC Trinkaus & Burkhar 18.900 9/27/2024 EUR 11.680 Societe Generale SA 20.000 11/28/2025 USD 12.920 Societe Generale SA 15.600 8/25/2026 USD 39.830 UBS AG/London 20.000 11/29/2024 USD 17.810 Deutsche Bank AG/London 12.780 3/16/2028 TRY 46.786 UBS AG/London 10.000 3/23/2026 USD 28.730 Citigroup Global Market 25.530 2/18/2025 EUR 0.010 Societe Generale SA 15.000 9/29/2025 USD 8.400 Societe Generale SA 21.000 12/26/2025 USD 26.000 Elli Investments Ltd 12.250 6/15/2020 GBP 1.171 UkrLandFarming PLC 10.875 3/26/2018 USD 1.969 KPNQwest NV 10.000 3/15/2012 EUR 0.798 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 PA Resources AB 13.500 3/3/2016 SEK 0.124 UniCredit Bank GmbH 10.500 9/23/2024 EUR 33.800 Banco Espirito Santo SA 10.000 12/6/2021 EUR 0.058 Deutsche Bank AG/London 14.900 5/30/2028 TRY 48.941 Zurcher Kantonalbank Fi 23.000 3/5/2025 CHF 48.940 Landesbank Baden-Wuertt 23.000 9/27/2024 EUR 45.730 Landesbank Baden-Wuertt 25.000 1/3/2025 EUR 11.870 Landesbank Baden-Wuertt 21.000 9/27/2024 EUR 49.660 Landesbank Baden-Wuertt 22.000 1/3/2025 EUR 11.520 Landesbank Baden-Wuertt 21.000 6/27/2025 EUR 18.680 DZ Bank AG Deutsche Zen 23.100 12/31/2024 EUR 33.630 DZ Bank AG Deutsche Zen 11.500 12/31/2024 EUR 9.760 DZ Bank AG Deutsche Zen 21.500 9/27/2024 EUR 40.560 DZ Bank AG Deutsche Zen 12.700 12/31/2024 EUR 49.290 DZ Bank AG Deutsche Zen 10.500 1/22/2025 EUR 9.280 Bank Vontobel AG 14.500 4/4/2025 CHF 48.200 Landesbank Baden-Wuertt 25.000 9/27/2024 EUR 12.690 Landesbank Baden-Wuertt 16.000 1/3/2025 EUR 11.220 Landesbank Baden-Wuertt 19.000 1/3/2025 EUR 11.290 Landesbank Baden-Wuertt 14.000 6/27/2025 EUR 14.540 Landesbank Baden-Wuertt 27.000 9/27/2024 EUR 8.710 Landesbank Baden-Wuertt 10.500 1/2/2026 EUR 15.520 Landesbank Baden-Wuertt 18.000 9/27/2024 EUR 14.910 UBS AG 10.000 7/29/2025 USD 34.160 Landesbank Baden-Wuertt 11.000 1/2/2026 EUR 17.450 Landesbank Baden-Wuertt 16.000 1/2/2026 EUR 22.700 DZ Bank AG Deutsche Zen 18.500 3/28/2025 EUR 20.630 DZ Bank AG Deutsche Zen 17.600 6/27/2025 EUR 22.500 Bank Vontobel AG 12.000 4/11/2025 CHF 46.900 Bank Vontobel AG 11.000 4/11/2025 CHF 17.300 Bank 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Government Bond 11.000 3/24/2037 UAH 30.650 Vontobel Financial Prod 14.750 12/31/2024 EUR 33.900 Vontobel Financial Prod 22.500 12/31/2024 EUR 48.640 Vontobel Financial Prod 16.500 12/31/2024 EUR 32.990 Vontobel Financial Prod 20.250 12/31/2024 EUR 31.720 Vontobel Financial Prod 13.000 12/31/2024 EUR 34.920 Vontobel Financial Prod 18.500 12/31/2024 EUR 32.340 Vontobel Financial Prod 11.250 12/31/2024 EUR 36.090 Leonteq Securities AG/G 16.000 3/4/2025 CHF 47.510 Raiffeisen Switzerland 16.000 3/4/2025 CHF 14.220 DZ Bank AG Deutsche Zen 12.800 12/31/2024 EUR 44.750 DZ Bank AG Deutsche Zen 15.700 12/31/2024 EUR 40.630 DZ Bank AG Deutsche Zen 11.400 12/31/2024 EUR 47.340 DZ Bank AG Deutsche Zen 14.200 12/31/2024 EUR 42.530 DZ Bank AG Deutsche Zen 17.300 12/31/2024 EUR 39.010 DZ Bank AG Deutsche Zen 14.200 12/31/2024 EUR 9.370 Vontobel Financial Prod 19.250 12/31/2024 EUR 51.010 DZ Bank AG Deutsche Zen 19.000 12/31/2024 EUR 37.640 Zurcher Kantonalbank Fi 24.000 11/22/2024 EUR 50.190 Leonteq Securities AG 21.000 12/18/2024 CHF 47.530 Ukraine Government Bond 11.000 4/8/2037 UAH 30.645 Ukraine Government Bond 11.000 4/20/2037 UAH 30.876 Landesbank Baden-Wuertt 18.000 1/3/2025 EUR 10.670 Landesbank Baden-Wuertt 10.500 4/28/2025 EUR 13.490 Landesbank Baden-Wuertt 19.000 4/28/2025 EUR 16.620 Vontobel Financial Prod 29.200 1/17/2025 EUR 27.780 DZ Bank AG Deutsche Zen 13.200 3/28/2025 EUR 45.010 DZ Bank AG Deutsche Zen 23.600 3/28/2025 EUR 48.250 Swissquote Bank Europe 25.320 2/26/2025 CHF 35.050 Leonteq Securities AG/G 20.000 3/11/2025 CHF 14.410 Raiffeisen Switzerland 16.500 3/11/2025 CHF 14.140 UniCredit Bank GmbH 13.000 9/27/2024 EUR 50.220 UniCredit Bank GmbH 17.300 9/27/2024 EUR 43.280 UniCredit Bank GmbH 14.800 9/27/2024 EUR 36.850 UniCredit Bank GmbH 16.900 9/27/2024 EUR 33.910 Swissquote Bank SA 24.000 10/9/2024 CHF 41.890 Landesbank Baden-Wuertt 23.000 9/27/2024 EUR 44.580 Landesbank Baden-Wuertt 18.000 1/3/2025 EUR 49.140 Landesbank Baden-Wuertt 16.500 4/28/2025 EUR 15.570 Bank Vontobel AG 11.000 4/29/2025 CHF 23.300 Landesbank Baden-Wuertt 11.000 2/27/2026 EUR 18.250 Landesbank Baden-Wuertt 12.000 2/27/2026 EUR 19.430 Landesbank Baden-Wuertt 11.500 2/28/2025 EUR 12.500 Landesbank Baden-Wuertt 19.000 2/28/2025 EUR 13.780 Landesbank Baden-Wuertt 15.000 2/28/2025 EUR 12.880 DZ Bank AG Deutsche Zen 10.600 9/27/2024 EUR 48.030 UniCredit Bank GmbH 15.100 9/27/2024 EUR 46.480 UniCredit Bank GmbH 13.800 9/27/2024 EUR 38.530 UniCredit Bank GmbH 15.800 9/27/2024 EUR 35.320 UniCredit Bank GmbH 18.000 9/27/2024 EUR 32.630 Swissquote Bank SA 24.180 10/9/2024 CHF 42.880 Leonteq Securities AG 21.000 1/9/2025 CHF 50.540 Leonteq Securities AG 24.000 1/9/2025 CHF 22.260 Leonteq Securities AG 23.000 1/9/2025 CHF 45.890 Leonteq Securities AG/G 11.000 1/9/2025 CHF 35.520 UniCredit Bank GmbH 19.100 9/27/2024 EUR 31.440 Landesbank Baden-Wuertt 13.000 6/27/2025 EUR 15.070 Landesbank Baden-Wuertt 16.000 6/27/2025 EUR 16.510 Landesbank Baden-Wuertt 15.000 1/3/2025 EUR 13.420 Landesbank Baden-Wuertt 16.000 6/27/2025 EUR 15.590 Landesbank Baden-Wuertt 19.000 6/27/2025 EUR 17.480 Vontobel Financial Prod 12.250 12/31/2024 EUR 50.530 DZ Bank AG Deutsche Zen 16.400 3/28/2025 EUR 47.210 Landesbank Baden-Wuertt 13.000 4/24/2026 EUR 22.780 Landesbank Baden-Wuertt 10.500 4/24/2026 EUR 19.440 Landesbank Baden-Wuertt 11.500 4/24/2026 EUR 20.710 Raiffeisen Schweiz Geno 16.000 2/19/2025 CHF 47.170 DZ Bank AG Deutsche Zen 12.000 9/25/2024 EUR 9.860 DZ Bank AG Deutsche Zen 10.750 12/27/2024 EUR 50.980 Leonteq Securities AG 18.000 12/27/2024 CHF 48.360 Leonteq Securities AG 21.000 10/30/2024 CHF 27.650 Leonteq Securities AG 21.000 1/3/2025 CHF 24.550 Leonteq Securities AG 25.000 1/3/2025 CHF 40.550 Leonteq Securities AG/G 22.000 10/2/2024 CHF 32.770 UniCredit Bank GmbH 18.500 9/27/2024 EUR 35.180 UniCredit Bank GmbH 14.200 9/27/2024 EUR 39.320 UniCredit Bank GmbH 15.600 9/27/2024 EUR 51.370 UniCredit Bank GmbH 16.900 9/27/2024 EUR 49.510 Bank Julius Baer & Co L 11.150 11/25/2024 USD 47.200 UniCredit Bank GmbH 18.500 12/31/2024 EUR 39.760 Vontobel Financial Prod 13.500 9/27/2024 EUR 46.110 DZ Bank AG Deutsche Zen 10.250 9/25/2024 EUR 46.300 DZ Bank AG Deutsche Zen 10.500 12/27/2024 EUR 46.110 DZ Bank AG Deutsche Zen 21.300 12/31/2024 EUR 42.390 Vontobel Financial Prod 18.000 9/27/2024 EUR 40.120 DZ Bank AG Deutsche Zen 11.000 12/20/2024 EUR 46.230 Vontobel Financial Prod 14.500 9/27/2024 EUR 49.400 Landesbank Baden-Wuertt 10.500 11/22/2024 EUR 11.280 BNP Paribas Issuance BV 19.000 9/18/2026 EUR 0.980 Leonteq Securities AG 25.000 12/18/2024 CHF 43.810 UniCredit Bank GmbH 10.700 2/28/2025 EUR 37.240 UniCredit Bank GmbH 11.700 2/28/2025 EUR 36.050 Landesbank Baden-Wuertt 15.000 9/27/2024 EUR 10.690 Landesbank Baden-Wuertt 17.000 9/27/2024 EUR 9.740 UniCredit Bank GmbH 14.500 11/22/2024 EUR 40.640 HSBC Trinkaus & Burkhar 14.500 9/27/2024 EUR 16.200 HSBC Trinkaus & Burkhar 14.500 12/30/2024 EUR 7.520 Vontobel Financial Prod 12.500 9/27/2024 EUR 42.030 DZ Bank AG Deutsche Zen 13.000 12/27/2024 EUR 50.080 Landesbank Baden-Wuertt 11.800 9/27/2024 EUR 47.910 Landesbank Baden-Wuertt 18.500 9/27/2024 EUR 9.210 UniCredit Bank GmbH 13.800 2/28/2025 EUR 43.770 HSBC Trinkaus & Burkhar 12.900 12/30/2024 EUR 45.900 Vontobel Financial Prod 14.000 9/27/2024 EUR 44.190 HSBC Trinkaus & Burkhar 10.250 9/27/2024 EUR 37.940 HSBC Trinkaus & Burkhar 18.750 9/27/2024 EUR 29.080 UniCredit Bank GmbH 19.100 12/31/2024 EUR 35.990 HSBC Trinkaus & Burkhar 15.200 12/30/2024 EUR 26.490 HSBC Trinkaus & Burkhar 13.100 12/30/2024 EUR 28.270 HSBC Trinkaus & Burkhar 13.400 3/28/2025 EUR 30.070 Landesbank Baden-Wuertt 10.000 6/27/2025 EUR 13.150 Landesbank Baden-Wuertt 14.000 6/27/2025 EUR 14.670 DZ Bank AG Deutsche Zen 10.800 9/27/2024 EUR 38.940 Leonteq Securities AG/G 22.000 9/18/2024 CHF 44.870 UniCredit Bank GmbH 15.700 12/31/2024 EUR 50.790 UniCredit Bank GmbH 19.700 12/31/2024 EUR 33.020 UniCredit Bank GmbH 17.000 12/31/2024 EUR 51.280 UniCredit Bank GmbH 18.000 12/31/2024 EUR 49.000 HSBC Trinkaus & Burkhar 11.900 9/27/2024 EUR 28.040 HSBC Trinkaus & Burkhar 16.300 12/30/2024 EUR 25.780 Landesbank Baden-Wuertt 13.000 3/28/2025 EUR 11.430 Swissquote Bank SA 28.320 9/18/2024 CHF 46.420 UniCredit Bank GmbH 18.800 12/31/2024 EUR 33.750 UniCredit Bank GmbH 18.900 12/31/2024 EUR 46.950 Landesbank Baden-Wuertt 15.000 11/22/2024 EUR 46.530 Landesbank Baden-Wuertt 10.000 11/22/2024 EUR 44.170 Leonteq Securities AG/G 21.000 11/27/2024 EUR 48.220 Raiffeisen Bank Interna 14.558 9/25/2024 EUR 45.290 DZ Bank AG Deutsche Zen 19.100 12/31/2024 EUR 45.930 Vontobel Financial Prod 13.250 9/27/2024 EUR 49.920 Vontobel Financial Prod 19.000 9/27/2024 EUR 42.980 Vontobel Financial Prod 22.250 9/27/2024 EUR 40.230 Raiffeisen Switzerland 14.000 11/27/2024 USD 47.760 Vontobel Financial Prod 16.000 9/27/2024 EUR 46.180 Vontobel Financial Prod 17.000 9/27/2024 EUR 37.360 Vontobel Financial Prod 19.750 9/27/2024 EUR 35.380 Vontobel Financial Prod 10.000 9/27/2024 EUR 45.100 BNP Paribas Emissions- 14.000 12/30/2024 EUR 50.500 BNP Paribas Emissions- 17.000 12/30/2024 EUR 47.140 BNP Paribas Emissions- 16.000 12/30/2024 EUR 33.360 Leonteq Securities AG/G 19.000 11/22/2024 CHF 46.270 DZ Bank AG Deutsche Zen 10.500 9/25/2024 EUR 46.600 Vontobel Financial Prod 12.000 9/27/2024 EUR 42.160 Vontobel Financial Prod 14.500 9/27/2024 EUR 39.610 BNP Paribas Emissions- 17.000 12/30/2024 EUR 32.380 Raiffeisen Schweiz Geno 20.000 10/16/2024 CHF 20.290 UniCredit Bank GmbH 13.700 9/27/2024 EUR 42.490 Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000 Zurcher Kantonalbank Fi 10.500 2/4/2025 EUR 46.850 UniCredit Bank GmbH 19.300 12/31/2024 EUR 38.550 Bank Vontobel AG 20.500 11/4/2024 CHF 29.000 DZ Bank AG Deutsche Zen 14.000 12/20/2024 EUR 41.810 EFG International Finan 20.000 11/8/2024 EUR 47.940 UniCredit Bank GmbH 14.900 9/27/2024 EUR 53.650 Landesbank Baden-Wuertt 16.000 11/22/2024 EUR 9.820 DZ Bank AG Deutsche Zen 13.400 12/31/2024 EUR 42.530 DZ Bank AG Deutsche Zen 10.000 9/27/2024 EUR 36.600 DZ Bank AG Deutsche Zen 11.000 9/27/2024 EUR 34.560 DZ Bank AG Deutsche Zen 15.700 9/27/2024 EUR 46.220 Leonteq Securities AG 25.000 12/11/2024 CHF 39.480 DZ Bank AG Deutsche Zen 13.100 9/27/2024 EUR 31.110 Corner Banca SA 20.000 3/5/2025 USD 45.320 HSBC Trinkaus & Burkhar 10.250 12/30/2024 EUR 40.330 UniCredit Bank GmbH 20.000 12/31/2024 EUR 35.110 Leonteq Securities AG/G 20.000 1/22/2025 CHF 14.050 HSBC Trinkaus & Burkhar 14.400 9/27/2024 EUR 42.870 HSBC Trinkaus & Burkhar 11.500 12/30/2024 EUR 48.710 HSBC Trinkaus & Burkhar 17.500 12/30/2024 EUR 33.290 Raiffeisen Schweiz Geno 15.000 1/22/2025 CHF 35.000 Raiffeisen Schweiz Geno 18.800 9/18/2024 CHF 31.500 Landesbank Baden-Wuertt 11.000 3/28/2025 EUR 11.070 Landesbank Baden-Wuertt 15.000 3/28/2025 EUR 11.930 Raiffeisen Schweiz Geno 10.000 10/4/2024 CHF 34.090 Bank Vontobel AG 13.500 1/8/2025 CHF 7.100 DZ Bank AG Deutsche Zen 18.500 9/27/2024 EUR 41.570 Vontobel Financial Prod 14.250 12/31/2024 EUR 50.170 Vontobel Financial Prod 11.250 12/31/2024 EUR 49.320 Landesbank Baden-Wuertt 12.000 1/3/2025 EUR 11.110 Landesbank Baden-Wuertt 15.000 1/3/2025 EUR 10.510 DZ Bank AG Deutsche Zen 16.000 9/27/2024 EUR 46.730 Swissquote Bank Europe 20.300 1/29/2025 USD 50.100 DZ Bank AG Deutsche Zen 16.500 12/27/2024 EUR 12.530 Landesbank Baden-Wuertt 13.000 10/25/2024 EUR 12.600 Landesbank Baden-Wuertt 16.000 10/25/2024 EUR 11.220 Leonteq Securities AG 24.000 1/13/2025 CHF 8.940 Landesbank Baden-Wuertt 11.500 10/25/2024 EUR 13.540 Landesbank Baden-Wuertt 10.000 10/25/2024 EUR 48.590 Vontobel Financial Prod 15.250 12/31/2024 EUR 49.860 Vontobel Financial Prod 14.250 12/31/2024 EUR 36.830 UniCredit Bank GmbH 14.800 9/27/2024 EUR 40.450 Vontobel Financial Prod 12.500 12/31/2024 EUR 38.250 Vontobel Financial Prod 10.750 12/31/2024 EUR 39.890 Vontobel Financial Prod 17.500 12/31/2024 EUR 47.210 Basler Kantonalbank 12.000 2/17/2025 CHF 47.910 Leonteq Securities AG/G 20.800 2/5/2025 CHF 48.990 Vontobel Financial Prod 11.000 12/31/2024 EUR 32.390 Landesbank Baden-Wuertt 12.000 9/27/2024 EUR 49.990 Vontobel Financial Prod 13.250 9/27/2024 EUR 44.830 Vontobel Financial Prod 10.750 9/27/2024 EUR 50.040 Swissquote Bank Europe 16.030 1/16/2025 USD 49.510 Vontobel Financial Prod 20.250 12/31/2024 EUR 13.445 BNP Paribas Emissions- 13.000 12/30/2024 EUR 46.600 DZ Bank AG Deutsche Zen 20.300 12/31/2024 EUR 52.050 Vontobel Financial Prod 13.000 12/31/2024 EUR 38.410 Vontobel Financial Prod 16.750 12/31/2024 EUR 35.950 Vontobel Financial Prod 14.750 12/31/2024 EUR 46.490 Vontobel Financial Prod 20.000 12/31/2024 EUR 42.610 DZ Bank AG Deutsche Zen 15.500 12/31/2024 EUR 38.170 Vontobel Financial Prod 11.000 12/31/2024 EUR 39.910 Vontobel Financial Prod 14.750 12/31/2024 EUR 37.050 Vontobel Financial Prod 12.500 12/31/2024 EUR 49.140 Vontobel Financial Prod 17.250 12/31/2024 EUR 44.340 DZ Bank AG Deutsche Zen 10.750 12/27/2024 EUR 50.090 Landesbank Baden-Wuertt 14.000 1/24/2025 EUR 10.970 Vontobel Financial Prod 16.000 3/28/2025 EUR 17.306 Leonteq Securities AG/G 10.340 8/31/2026 EUR 44.480 Vontobel Financial Prod 15.500 9/27/2024 EUR 41.220 UniCredit Bank GmbH 14.600 2/28/2025 EUR 51.720 UniCredit Bank GmbH 12.800 2/28/2025 EUR 34.780 UniCredit Bank GmbH 13.100 2/28/2025 EUR 45.100 UniCredit Bank GmbH 14.500 2/28/2025 EUR 42.390 HSBC Trinkaus & Burkhar 13.500 12/30/2024 EUR 50.030 HSBC Trinkaus & Burkhar 14.500 9/27/2024 EUR 46.730 DZ Bank AG Deutsche Zen 20.400 9/27/2024 EUR 36.260 UniCredit Bank GmbH 13.700 9/27/2024 EUR 40.580 Vontobel Financial Prod 18.000 12/31/2024 EUR 46.270 DZ Bank AG Deutsche Zen 10.750 12/27/2024 EUR 10.190 UniCredit Bank GmbH 16.600 12/31/2024 EUR 47.240 UniCredit Bank GmbH 16.100 12/31/2024 EUR 53.880 UniCredit Bank GmbH 19.800 12/31/2024 EUR 45.130 HSBC Trinkaus & Burkhar 16.800 9/27/2024 EUR 22.900 HSBC Trinkaus & Burkhar 14.300 9/27/2024 EUR 25.190 Landesbank Baden-Wuertt 10.500 6/27/2025 EUR 51.180 HSBC Trinkaus & Burkhar 11.600 3/28/2025 EUR 31.770 HSBC Trinkaus & Burkhar 15.700 12/30/2024 EUR 6.300 HSBC Trinkaus & Burkhar 17.700 9/27/2024 EUR 9.010 HSBC Trinkaus & Burkhar 18.100 12/30/2024 EUR 6.590 Leonteq Securities AG 20.000 9/18/2024 CHF 17.900 UniCredit Bank GmbH 16.600 12/31/2024 EUR 49.200 UniCredit Bank GmbH 15.100 12/31/2024 EUR 49.810 HSBC Trinkaus & Burkhar 11.100 12/30/2024 EUR 30.630 Leonteq Securities AG 24.000 1/16/2025 CHF 35.240 Raiffeisen Switzerland 11.800 1/15/2025 CHF 48.550 Raiffeisen Switzerland 13.900 1/15/2025 EUR 49.130 UniCredit Bank GmbH 12.300 9/27/2024 EUR 41.830 UniCredit Bank GmbH 10.700 9/27/2024 EUR 43.880 UniCredit Bank GmbH 16.300 9/27/2024 EUR 37.130 Raiffeisen Schweiz Geno 19.000 10/2/2024 CHF 33.640 UniCredit Bank GmbH 16.550 8/18/2025 USD 20.920 UBS AG/London 21.600 8/2/2027 SEK 21.330 Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000 Lehman Brothers Treasur 11.000 12/19/2011 USD 0.100 Lehman Brothers Treasur 15.000 3/30/2011 EUR 0.100 Lehman Brothers Treasur 14.900 9/15/2008 EUR 0.100 Lehman Brothers Treasur 13.500 11/28/2008 USD 0.100 Bulgaria Steel Finance 12.000 5/4/2013 EUR 0.216 DZ Bank AG Deutsche Zen 11.800 9/27/2024 EUR 44.940 UniCredit Bank GmbH 14.300 11/22/2024 EUR 50.730 UniCredit Bank GmbH 10.900 11/22/2024 EUR 38.370 UniCredit Bank GmbH 10.000 11/22/2024 EUR 40.480 UniCredit Bank GmbH 11.900 11/22/2024 EUR 36.530 UniCredit Bank GmbH 11.000 11/22/2024 EUR 44.640 National Mortgage Co RC 12.000 3/30/2026 AMD 0.000 Evocabank CJSC 11.000 9/27/2025 AMD 9.542 ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000 UniCredit Bank GmbH 14.900 11/22/2024 EUR 49.340 UniCredit Bank GmbH 13.700 11/22/2024 EUR 52.220 UniCredit Bank GmbH 13.000 11/22/2024 EUR 34.920 UniCredit Bank GmbH 10.200 11/22/2024 EUR 46.120 Leonteq Securities AG/G 10.000 11/12/2024 CHF 43.050 Bank Vontobel AG 10.000 11/4/2024 EUR 46.800 Vontobel Financial Prod 15.500 9/27/2024 EUR 45.530 Vontobel Financial Prod 21.000 9/27/2024 EUR 34.190 Landesbank Baden-Wuertt 12.000 1/24/2025 EUR 10.300 Vontobel Financial Prod 18.000 9/27/2024 EUR 42.990 Vontobel Financial Prod 11.500 9/27/2024 EUR 51.930 Zurcher Kantonalbank Fi 19.500 9/18/2024 CHF 47.070 Leonteq Securities AG/G 11.000 10/11/2024 CHF 48.980 Zurcher Kantonalbank Fi 12.000 10/4/2024 EUR 48.740 Leonteq Securities AG 24.000 9/25/2024 CHF 34.530 Raiffeisen Schweiz Geno 20.000 9/25/2024 CHF 18.450 Raiffeisen Schweiz Geno 20.000 9/25/2024 CHF 28.500 Landesbank Baden-Wuertt 11.000 1/24/2025 EUR 47.680 Vontobel Financial Prod 13.500 9/27/2024 EUR 48.490 UniCredit Bank GmbH 18.800 12/31/2024 EUR 30.220 UniCredit Bank GmbH 18.000 12/31/2024 EUR 30.800 UniCredit Bank GmbH 17.200 12/31/2024 EUR 31.430 UniCredit Bank GmbH 19.600 12/31/2024 EUR 29.690 Leonteq Securities AG/G 12.000 10/11/2024 EUR 40.760 Leonteq Securities AG 23.000 12/27/2024 CHF 31.230 Landesbank Baden-Wuertt 15.500 1/24/2025 EUR 10.190 Landesbank Baden-Wuertt 15.500 9/27/2024 EUR 7.260 Landesbank Baden-Wuertt 11.000 11/22/2024 EUR 11.370 Landesbank Baden-Wuertt 14.500 11/22/2024 EUR 10.040 HSBC Trinkaus & Burkhar 20.000 9/27/2024 EUR 10.680 HSBC Trinkaus & Burkhar 17.400 12/30/2024 EUR 7.220 Corner Banca SA 10.000 11/8/2024 CHF 41.740 HSBC Trinkaus & Burkhar 17.500 6/27/2025 EUR 12.620 HSBC Trinkaus & Burkhar 10.250 6/27/2025 EUR 38.930 HSBC Trinkaus & Burkhar 12.750 6/27/2025 EUR 10.130 HSBC Trinkaus & Burkhar 13.500 6/27/2025 EUR 50.860 HSBC Trinkaus & Burkhar 15.500 6/27/2025 EUR 37.750 UBS AG/London 12.000 11/4/2024 EUR 45.600 BNP Paribas Emissions- 16.000 12/30/2024 EUR 46.730 BNP Paribas Emissions- 17.000 12/30/2024 EUR 44.190 UniCredit Bank GmbH 13.400 9/27/2024 EUR 44.800 HSBC Trinkaus & Burkhar 22.250 6/27/2025 EUR 15.870 HSBC Trinkaus & Burkhar 11.250 6/27/2025 EUR 44.010 Leonteq Securities AG 24.000 12/27/2024 CHF 35.520 Bank Vontobel AG 15.500 11/18/2024 CHF 27.800 UniCredit Bank GmbH 11.000 9/19/2024 EUR 48.630 UBS AG/London 14.000 9/25/2028 EUR 46.970 Landesbank Baden-Wuertt 13.000 9/27/2024 EUR 47.940 DZ Bank AG Deutsche Zen 15.200 12/31/2024 EUR 48.300 Landesbank Baden-Wuertt 13.000 9/27/2024 EUR 49.440 Landesbank Baden-Wuertt 11.500 9/27/2024 EUR 9.310 UniCredit Bank GmbH 19.300 12/31/2024 EUR 37.250 UniCredit Bank GmbH 14.700 11/22/2024 EUR 42.560 UniCredit Bank GmbH 12.900 11/22/2024 EUR 33.410 Vontobel Financial Prod 18.000 9/27/2024 EUR 24.860 Vontobel Financial Prod 10.500 9/27/2024 EUR 46.410 Vontobel Financial Prod 12.750 9/27/2024 EUR 51.760 UniCredit Bank GmbH 14.200 11/22/2024 EUR 32.160 Vontobel Financial Prod 20.000 9/27/2024 EUR 45.500 DZ Bank AG Deutsche Zen 14.000 9/27/2024 EUR 37.260 Vontobel Financial Prod 12.250 9/27/2024 EUR 51.860 Vontobel Financial Prod 10.000 9/27/2024 EUR 31.620 Vontobel Financial Prod 13.250 9/27/2024 EUR 28.850 DZ Bank AG Deutsche Zen 14.500 3/28/2025 EUR 49.830 DZ Bank AG Deutsche Zen 18.200 3/28/2025 EUR 45.940 UniCredit Bank GmbH 10.700 11/22/2024 EUR 46.220 UniCredit Bank GmbH 10.400 2/28/2025 EUR 48.690 UniCredit Bank GmbH 11.600 2/28/2025 EUR 46.280 UniCredit Bank GmbH 13.900 11/22/2024 EUR 44.510 UniCredit Bank GmbH 13.500 2/28/2025 EUR 47.540 Landesbank Baden-Wuertt 10.000 10/24/2025 EUR 14.790 Bank Vontobel AG 12.000 11/11/2024 CHF 46.600 DZ Bank AG Deutsche Zen 17.800 9/27/2024 EUR 26.590 DZ Bank AG Deutsche Zen 17.900 9/27/2024 EUR 39.500 DZ Bank AG Deutsche Zen 12.000 9/27/2024 EUR 33.070 Leonteq Securities AG/G 20.000 9/26/2024 USD 11.820 Inecobank CJSC 10.000 4/28/2025 AMD 0.000 Vontobel Financial Prod 12.750 12/31/2024 EUR 48.380 UBS AG/London 10.500 9/23/2024 EUR 47.750 DZ Bank AG Deutsche Zen 14.400 9/27/2024 EUR 30.990 DZ Bank AG Deutsche Zen 14.700 9/27/2024 EUR 45.100 DZ Bank AG Deutsche Zen 14.500 9/27/2024 EUR 46.390 DZ Bank AG Deutsche Zen 16.800 9/27/2024 EUR 41.770 DZ Bank AG Deutsche Zen 23.500 9/27/2024 EUR 33.520 UniCredit Bank GmbH 18.600 12/31/2024 EUR 42.940 UniCredit Bank GmbH 12.800 10/10/2024 EUR 45.130 Vontobel Financial Prod 13.250 12/31/2024 EUR 46.620 Landesbank Baden-Wuertt 14.000 10/24/2025 EUR 17.940 UBS AG/London 11.250 9/16/2024 EUR 48.150 UBS AG/London 13.000 9/30/2024 CHF 11.660 Bank Vontobel AG 18.000 12/4/2024 USD 50.100 HSBC Trinkaus & Burkhar 15.100 12/30/2024 EUR 38.790 HSBC Trinkaus & Burkhar 12.500 12/30/2024 EUR 43.260 HSBC Trinkaus & Burkhar 11.800 9/27/2024 EUR 26.510 HSBC Trinkaus & Burkhar 16.100 12/30/2024 EUR 25.260 HSBC Trinkaus & Burkhar 15.900 3/28/2025 EUR 27.850 HSBC Trinkaus & Burkhar 13.300 6/27/2025 EUR 31.280 HSBC Trinkaus & Burkhar 10.400 10/25/2024 EUR 28.740 HSBC Trinkaus & Burkhar 12.600 11/22/2024 EUR 26.950 HSBC Trinkaus & Burkhar 10.300 11/22/2024 EUR 29.450 UniCredit Bank GmbH 15.100 9/27/2024 EUR 50.360 UniCredit Bank GmbH 16.400 9/27/2024 EUR 47.490 Vontobel Financial Prod 13.750 12/31/2024 EUR 48.400 Bank Vontobel AG 21.000 12/23/2024 CHF 50.000 HSBC Trinkaus & Burkhar 17.600 9/27/2024 EUR 33.830 HSBC Trinkaus & Burkhar 10.800 12/30/2024 EUR 47.180 HSBC Trinkaus & Burkhar 17.800 9/27/2024 EUR 21.440 HSBC Trinkaus & Burkhar 11.100 12/30/2024 EUR 29.110 HSBC Trinkaus & Burkhar 15.000 3/28/2025 EUR 28.280 HSBC Trinkaus & Burkhar 11.300 6/27/2025 EUR 32.670 HSBC Trinkaus & Burkhar 12.800 10/25/2024 EUR 26.080 HSBC Trinkaus & Burkhar 15.600 11/22/2024 EUR 24.590 Corner Banca SA 18.500 9/23/2024 CHF 5.390 Armenian Economy Develo 11.000 10/3/2025 AMD 0.000 UniCredit Bank GmbH 19.500 12/31/2024 EUR 41.480 Vontobel Financial Prod 17.000 9/27/2024 EUR 48.620 Vontobel Financial Prod 18.500 9/27/2024 EUR 47.010 Vontobel Financial Prod 20.500 9/27/2024 EUR 36.850 Lehman Brothers Treasur 13.000 7/25/2012 EUR 0.100 HSBC Trinkaus & Burkhar 12.400 9/27/2024 EUR 49.890 Landesbank Baden-Wuertt 11.000 1/3/2025 EUR 8.260 Landesbank Baden-Wuertt 13.000 1/3/2025 EUR 8.240 HSBC Trinkaus & Burkhar 15.900 9/27/2024 EUR 47.540 HSBC Trinkaus & Burkhar 14.300 9/27/2024 EUR 46.140 DZ Bank AG Deutsche Zen 12.000 9/25/2024 EUR 9.270 Landesbank Baden-Wuertt 14.000 11/22/2024 EUR 48.480 Landesbank Baden-Wuertt 18.000 11/22/2024 EUR 9.370 HSBC Trinkaus & Burkhar 19.600 12/30/2024 EUR 7.450 HSBC Trinkaus & Burkhar 18.300 9/27/2024 EUR 42.640 UniCredit Bank GmbH 10.500 12/22/2025 EUR 42.140 UniCredit Bank GmbH 10.500 4/7/2026 EUR 34.190 Raiffeisen Schweiz Geno 10.000 12/31/2024 CHF 47.980 Bank Julius Baer & Co L 12.720 2/17/2025 CHF 26.350 Lehman Brothers Treasur 18.250 10/2/2008 USD 0.100 Petromena ASA 10.850 11/19/2018 USD 0.622 Lehman Brothers Treasur 11.000 12/20/2017 AUD 0.100 Lehman Brothers Treasur 14.900 11/16/2010 EUR 0.100 Lehman Brothers Treasur 16.000 10/8/2008 CHF 0.100 Lehman Brothers Treasur 11.000 12/20/2017 AUD 0.100 Lehman Brothers Treasur 11.000 2/16/2009 CHF 0.100 UniCredit Bank GmbH 10.700 2/17/2025 EUR 22.440 Lehman Brothers Treasur 11.750 3/1/2010 EUR 0.100 Societe Generale SA 20.000 9/18/2026 USD 12.500 Lehman Brothers Treasur 10.000 2/16/2009 CHF 0.100 Lehman Brothers Treasur 11.000 12/20/2017 AUD 0.100 UniCredit Bank GmbH 10.700 2/3/2025 EUR 22.200 ASCE Group OJSC 12.000 6/11/2031 AMD 0.000 Erste Group Bank AG 14.500 5/31/2026 EUR 28.850 UniCredit Bank GmbH 10.300 9/27/2024 EUR 34.510 Lehman Brothers Treasur 13.000 2/16/2009 CHF 0.100 Armenian Economy Develo 10.500 5/4/2025 AMD 0.000 Landesbank Baden-Wuertt 11.500 10/25/2024 EUR 6.230 Lehman Brothers Treasur 16.000 11/9/2008 USD 0.100 Lehman Brothers Treasur 10.442 11/22/2008 CHF 0.100 Lehman Brothers Treasur 13.432 1/8/2009 ILS 0.100 EFG International Finan 11.120 12/27/2024 EUR 36.520 Lehman Brothers Treasur 13.150 10/30/2008 USD 0.100 Lehman Brothers Treasur 14.100 11/12/2008 USD 0.100 Lehman Brothers Treasur 11.000 7/4/2011 USD 0.100 Lehman Brothers Treasur 16.800 8/21/2009 USD 0.100 Lehman Brothers Treasur 13.500 6/2/2009 USD 0.100 Lehman Brothers Treasur 12.400 6/12/2009 USD 0.100 Lehman Brothers Treasur 10.000 6/17/2009 USD 0.100 Lehman Brothers Treasur 11.000 7/4/2011 CHF 0.100 Lehman Brothers Treasur 16.000 12/26/2008 USD 0.100 Lehman Brothers Treasur 16.000 10/28/2008 USD 0.100 Lehman Brothers Treasur 10.600 4/22/2014 MXN 0.100 Lehman Brothers Treasur 10.000 5/22/2009 USD 0.100 Lehman Brothers Treasur 17.000 6/2/2009 USD 0.100 Lehman Brothers Treasur 23.300 9/16/2008 USD 0.100 Lehman Brothers Treasur 12.000 7/4/2011 EUR 0.100 Lehman Brothers Treasur 10.000 10/23/2008 USD 0.100 Lehman Brothers Treasur 16.200 5/14/2009 USD 0.100 Lehman Brothers Treasur 15.000 6/4/2009 CHF 0.100 Lehman Brothers Treasur 10.000 10/22/2008 USD 0.100 Landesbank Baden-Wuertt 10.000 10/25/2024 EUR 6.760 Credit Agricole Corpora 10.200 12/13/2027 TRY 47.246 Lehman Brothers Treasur 11.250 12/31/2008 USD 0.100 Lehman Brothers Treasur 13.000 12/14/2012 USD 0.100 Lehman Brothers Treasur 12.000 7/13/2037 JPY 0.100 Lehman Brothers Treasur 10.000 6/11/2038 JPY 0.100 Lehman Brothers Treasur 10.500 8/9/2010 EUR 0.100 Goldman Sachs Internati 16.288 3/17/2027 USD 23.260 Privatbank CJSC Via UK 10.875 2/28/2018 USD 5.324 UBS AG/London 14.500 10/14/2024 CHF 25.820 Sidetur Finance BV 10.000 4/20/2016 USD 0.784 Bank Vontobel AG 10.000 10/21/2024 CHF 55.200 Teksid Aluminum Luxembo 12.375 7/15/2011 EUR 0.619 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.807 Lehman Brothers Treasur 10.000 3/27/2009 USD 0.100 Lehman Brothers Treasur 11.000 6/29/2009 EUR 0.100 Leonteq Securities AG/G 13.000 10/21/2024 EUR 47.400 UBS AG/London 15.750 10/21/2024 CHF 26.940 BLT Finance BV 12.000 2/10/2015 USD 10.500 HSBC Trinkaus & Burkhar 14.800 12/30/2024 EUR 41.990 HSBC Trinkaus & Burkhar 11.200 12/30/2024 EUR 49.850 HSBC Trinkaus & Burkhar 15.400 9/27/2024 EUR 23.990 HSBC Trinkaus & Burkhar 11.400 12/30/2024 EUR 29.930 HSBC Trinkaus & Burkhar 16.000 3/28/2025 EUR 28.320 HSBC Trinkaus & Burkhar 11.500 6/27/2025 EUR 33.470 HSBC Trinkaus & Burkhar 16.300 3/28/2025 EUR 8.200 HSBC Trinkaus & Burkhar 19.600 11/22/2024 EUR 5.810 HSBC Trinkaus & Burkhar 15.700 11/22/2024 EUR 25.120 HSBC Trinkaus & Burkhar 10.000 11/22/2024 EUR 31.120 HSBC Trinkaus & Burkhar 15.400 9/27/2024 EUR 40.080 Vontobel Financial Prod 22.500 9/27/2024 EUR 37.740 Vontobel Financial Prod 24.500 9/27/2024 EUR 6.119 DZ Bank AG Deutsche Zen 13.900 3/28/2025 EUR 13.360 UBS AG/London 11.000 1/20/2025 EUR 48.550 HSBC Trinkaus & Burkhar 17.300 9/27/2024 EUR 36.860 HSBC Trinkaus & Burkhar 13.400 12/30/2024 EUR 44.510 HSBC Trinkaus & Burkhar 18.000 9/27/2024 EUR 21.920 HSBC Trinkaus & Burkhar 12.100 9/27/2024 EUR 27.250 HSBC Trinkaus & Burkhar 14.100 12/30/2024 EUR 27.320 HSBC Trinkaus & Burkhar 15.100 3/28/2025 EUR 28.800 HSBC Trinkaus & Burkhar 11.000 3/28/2025 EUR 32.220 HSBC Trinkaus & Burkhar 13.400 6/27/2025 EUR 31.550 HSBC Trinkaus & Burkhar 17.500 9/27/2024 EUR 7.300 HSBC Trinkaus & Burkhar 15.200 12/30/2024 EUR 5.670 HSBC Trinkaus & Burkhar 14.400 3/28/2025 EUR 7.390 HSBC Trinkaus & Burkhar 13.100 10/25/2024 EUR 26.770 HSBC Trinkaus & Burkhar 10.200 10/25/2024 EUR 30.450 HSBC Trinkaus & Burkhar 12.800 11/22/2024 EUR 27.640 HSBC Trinkaus & Burkhar 13.900 12/30/2024 EUR 43.390 HSBC Trinkaus & Burkhar 12.800 3/28/2025 EUR 44.880 HSBC Trinkaus & Burkhar 11.500 3/28/2025 EUR 46.920 HSBC Trinkaus & Burkhar 11.300 11/22/2024 EUR 47.690 DZ Bank AG Deutsche Zen 11.500 9/25/2024 EUR 50.280 Vontobel Financial Prod 16.500 9/27/2024 EUR 46.190 Vontobel Financial Prod 10.500 9/27/2024 EUR 49.540 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *