Fitch assigns BBB+(tur) to Eko Faktoring

Fitch Ratings said it assigned a national long-term rating of BBB+(tur) to Eko Faktoring AS.

The outlook is stable.

The rating reflects the company's position as a small, independent company in Turkey's fragmented factoring sector, Fitch said.

Eko provides factoring services to small- to medium-sized enterprises, which represent about 35% of its receivables book, the agency said.

Concentrations by customer group and sector can be high and impaired receivables are considerably higher than the 4.9% sector average, Fitch said.

However, the company's impaired receivables ratio is not directly comparable with the ratio reported by some of its peers because Eko does not write off impaired receivables, the agency said.

The company's provisioning policies are prudent and forward-looking, Fitch said.

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