Fitch: Kuveyt Turk notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to KT Sukuk Co. Ltd.’s planned $400 million issue of Basel III-compliant tier 2 capital notes.

KT Sukuk is a legal entity set up for the purpose of issuing the notes, Fitch said.

The rating on the notes is driven solely by the ratings on Kuveyt Turk Katilim Bankasi’s issuer default rating as an anchor for notching with the notes qualifying as Basel III-compliant tier 2 instruments, Fitch said.

The agency said it has given no consideration to any underlying assets or any collateral provided as the issuer’s ability to satisfy payments due on the certificates will ultimately depend on Kuveyt Turk satisfying its unsecured payment obligations to the issuer under the transaction documents.

The expected rating also takes into account the sukuk’s structure and documentation, Fitch said.

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