Fitch rates Akbank notes BB

Fitch Ratings said it assigned an expected rating of BB to Akbank TAS's planned issue of Basel III-compliant tier 2 capital notes.

The bank also has a long-term foreign-currency and local-currency issuer default ratings of BB+, short-term foreign-currency and local-currency issuer default ratings of B, viability rating of BB+ and national long-term rating of AA+(tur).

The notes qualify as tier 2 instruments and contain contractual loss absorption features, which will be triggered at the point of non-viability of the bank, Fitch explained.

The notes have an expected 10-year maturity and a call option after five years, the agency added.

The notes are rated one notch below Akbank's viability rating due to loss severity, Fitch said.

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