Fitch Ratings has assigned Akbank T.A.S.'s (
The assignment of the final rating follows the receipt of final documents conforming to the information that Fitch has already received.
Key Rating Drivers
The AT1 notes are rated three notches below
We have used the bank's VR as anchor rating as we deem it the most appropriate measure of non-performance risk. In accordance with the Bank Rating Criteria, Fitch has applied three notches from
The notes are perpetual, deeply subordinated, fixed-rate resettable AT1 debt securities, with fully discretionary, noncumulative coupons and have a call option after five years. The notes are subject to full or partial principal write-down if
In addition, the notes are subject to permanent partial or full write-down, on the occurrence of a non-viability event (NVE). A NVE is when a bank incurs a loss (on a consolidated or non-consolidated basis) and the bank becomes, or it is probable that the bank will become, non-viable as determined by the local regulator, the
The notes are
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The rating of the notes is primarily sensitive to changes to
The AT1 rating is also sensitive to change in Fitch's assessment of the notes' non-performance relative to the risk captured in the VR. This may result, for example, from a significant decline in capital buffers relative to regulatory requirements.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The rating of the notes is sensitive to an upgrade of
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by increased regulatory interventions and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on banks' credit profiles and is relevant to banks' rating in combination with other factors.
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating
AKBANK T.A.S.
subordinated
LT
CCC
New Rating
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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