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Announcement:

Moody's issues annual credit report on Toplu Konut Idaresi Baskanligi (TOKI), Turkey

Global Credit Research - 22 Mar 2012

Milan, March 22, 2012 -- In its annual report on the Turkish housing administration, TOKI, Moody's Investors Service says the Ba2 (global scale, local and foreign currency) and A3.tr (Turkey national scale) issuer ratings reflect the company's close linkages with the Turkish government, given its role in executing its housing and urbanisation policies. The outlook on TOKI's Ba2 rating is positive, in line with the outlook on Turkey's sovereign rating.

Moody's notes that TOKI's ratings are also supported by its solid sales performance, its positive financial results, which have benefitted from substantial asset expansion, and its limited financial debt, which reflects its robust self-financing capacity. Going forward, Moody's is confident that TOKI will effectively manage the execution of its large investment programme without significantly stressing its finances, given a stable legal framework and continued support and oversight by the central government.Greater sales in both its social housing (85% of TOKI's revenue) and commercial activities (15%) largely reflect a higher number of land plots allocated to TOKI by the government for new social housing development. This sales growth has supported an increase in revenue to around TL6.2 billion in FY 2010 from TL1.1 billion in 2005, which combined with more limited growth in operating costs has led to a operating surplus of 46% of revenue.

Moody's notes that at FYE 2010, TOKI's financial debt was TL1.5 billion, which is equivalent to 0.2x revenues and 5% of assets. This is low when compared with its international peers and reflects TOKI's good self-financing capacity to date. Moreover, according to management's forecasts, financial debt is expected to remain stable despite TOKI's ambitious development plans.

TOKI is a not-for-profit public sector entity that operates under a mandate from the central government and the direction of the prime minister's office. TOKI's ratings are underpinned by its public sector status and its strategic role in executing the government's housing policies. Its management practices are oriented towards improving operational efficiency, albeit within limits and principles embedded in its social role, and has thus far adequately managed operational risks associated with its development-for-sale model.

Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".tr" for Turkey. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Implementation Guidance published in March 2011 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings."

Francesco Soldi
Vice President - Senior Analyst
Sub-Sovereign Group
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100

David Rubinoff
MD - Sub-Sovereigns
Sub-Sovereign Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100

Moody's issues annual credit report on Toplu Konut Idaresi Baskanligi (TOKI), Turkey
No Related Data.

 

© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

 


CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

 


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MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

 


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© 2013 Moody's Investors Service, Inc., Moody’s Analytics, Inc. ve/veya iştirakleri ve lisansörleri. Tüm haklar saklıdır.
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