Fitch: KT Sukuk notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to KT Sukuk Co. Ltd.'s $350 million issue of Basel III-compliant tier 2 capital notes.

The final rating is the same as the expected rating assigned in November 2015, Fitch said.

KT Sukuk is a legal entity set up for the purpose of issuing the notes and entering into related transaction documents.

The rating on the notes is driven solely by Kuveyt Turk Katilim Bankasi's long-term foreign-currency issuer default rating, which serves as an anchor for notching, Fitch said.

The notes are expected to qualify as Basel III-compliant tier 2 instruments, the agency said.

Fitch said it gave 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 Katilim Bankasi satisfying its unsecured payment obligations to the issuer under the transaction documents.

The rating also takes into account the sukuk's structure and documentation, Fitch added.

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