Fitch rates Kuveyt Turk certificates BBB

Fitch Ratings said it assigned an expected BBB rating to Kuveyt Turk Katilim Bankasi AS's proposed dollar-denominated sukuk certificates to be issued by KT Kira Sertifikalari Varlik Kiralama AS.

The expected rating is in line with Kuveyt Turk's long-term issuer default rating of BBB, which has a negative outlook, Fitch said.

The rating on the certificates is driven solely by Kuveyt Turk's long-term issuer default rating, the agency explained.

This reflects a view that a default on the certificates will happen only if Kuveyt Turk defaults on its senior unsecured obligations under the transaction structure, Fitch said.

The obligations under the transaction documents constitute direct, unconditional, unsecured and general obligations of Kuveyt Turk and shall rank at least pari passu with all other unsecured, unsubordinated and general obligations of Kuveyt Turk, the agency said.

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