Madrid, March 27, 2014 -- Moody's Investors Service has today placed on review for downgrade the
Baa2 and Baa3 ratings of 34 tranches in six Turkish future receivables
transactions (diversified payment rights (DPR) transactions). Concurrently,
Moody's has placed on review for downgrade the underlying ratings of all
tranches wrapped by financial guarantors, and affirmed the ratings
of three tranches with guarantors rated above the underlying rating of
the notes.
The review placements reflect Moody's decision to place on review
for downgrade the global local-currency (GLC) ratings of the six
Turkish banks that have originated the securitised receivables.
Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF361270
for the List of Affected Credit Ratings. This list is an integral
part of this Press Release and provides, for each of the credit
ratings covered, Moody's disclosures on the following items:
- Principal Methodology used
- Lead analyst
- Person Approving Credit Rating
- Releasing office
RATINGS RATIONALE
Today's rating announcement follows Moody's recent decision to review
for downgrade GLC long-term issuer and deposit ratings of several
Turkish banks including those that are the originators of the six Turkish
future receivables transactions:
1. Akbank TAS (Baa2 GLC rating on review for downgrade, standalone
bank financial strength rating (BFSR) D+/ baseline credit assessment
(BCA) baa3)
2. Denizbank A.S. (Baa3 GLC on review for downgrade,
BFSR D+ on review for downgrade/BCA ba1)
3. Turkiye Garanti Bankasi AS (Baa2 GLC on review for downgrade,
BFSR D+/BCA baa3),
4. Turkiye Vakiflar Bankasi TAO (Baa2 GLC on review for downgrade,
BFSR D+ on review for downgrade/BCA ba1)
5. Yapi ve Kredi Bankasi AS (Baa2 GLC on review for downgrade,
BFSR D+ on review for downgrade/BCA ba1); and
6. Turkiye Is Bankasi AS (Baa2 GLC on review for downgrade,
BFSR D+ /BCA baa3)
The placement of the Turkish banks on downgrade review reflects the pressures
on the standalone credit strength of the institutions and Moody's evolving
views on the level of systemic support that it believes should be incorporated
in the senior ratings. For more details, please refer to
the press release "Moody's reviews for downgrade the ratings of 10 Turkish
banks", published on 18 March 2014 and "Moody's reviews for
downgrade the ratings of Denizbank A.S." on 20 March
2014.
Under Moody's rating methodology, and in the absence of any transaction
specific concerns, the rating assigned to a future receivables transaction
is linked to the originator's local-currency rating.
The three tranches benefiting from a financial guarantee provided by Assured
Guaranty Corp (A3) and Assured Guaranty Municipal Corp (A2) have been
affirmed as the guarantor rating is higher than the underlying rating
of the notes (Baa2 on review for downgrade).
Given the direct linkage between the affected transaction and the originating
banks, Moody's expects to conclude its review of the affected transactions
in conjunction with the review on the ratings for the respective originators.
Factors that would lead to an upgrade or downgrade of the ratings:
The notes ratings may be upgraded or downgraded as a consequence of the
guarantors' or originators' ratings downgrade or upgrade.
The list of affected DPR transactions and originators is as follows:
- AKbank A.R.T.S. LTD.,
originated by Akbank TAS (Baa2 GLC deposit rating, on review for
downgrade)
- DFS Funding Corporation, originated by Denizbank A.S.
(Baa3 GLC deposit rating, on review for downgrade)
- Garanti Diversified Payment Rights Finance Company, originated
by Turkiye Garanti Bankasi AS (Baa2 GLC deposit rating, on review
for downgrade)
- TIB Diversified Payment Rights Finance Company, originated
by Turkiye Is Bankasi AS (Baa2 GLC deposit rating, on review for
downgrade)
- VB DPR Finance Company, originated by Turkiye Vakiflar
Bankasi TAO (Baa2 GLC deposit rating, on review for downgrade)
- Yapi Kredi Diversified Payment Rights Finance Company,
originated by Yapi ve Kredi Bankasi AS (Baa2 GLC deposit rating,
on review for downgrade)
No key assumptions, factors and sensitivity analysis have been conducted
as the ratings of the notes are directly linked to the GLC rating of the
originator.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions of the disclosure form.
Moody's did not use any stress scenario simulations in its analysis.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Antonio Tena
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Carole Gintz
Senior Vice President/Manager
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Ludovic Thebault
Analyst
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's reviews for downgrade 6 Turkish ABS future receivables transactions