Fitch rates Emlak Konut BB+

Fitch Ratings said it assigned a long-term local-currency issuer default rating of BB+ and national rating of AA(tur) to Emlak Konut Gayrimenkul Yatirim Ortakligi AS.

The outlook is stable.

Fitch also said it assigned a long-term foreign-currency issuer default rating of BB+ to Emlak Konut.

The ratings reflect Emlak Konut's unique revenue sharing model, which generates guaranteed income and a share of upside gains, the agency said.

The ratings also consider that the company can pass nearly all design, building, financing and marketing risks to developers, Fitch said.

Emlak holds a competitive advantage owing to its privileged position with its controlling shareholder, Turkey's Housing Development Administration, the agency said.

The ratings also take into account the company's exposure to potential volatile housing demand and prices, as well as regulatory and political risks, Fitch said.

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