Credit Opinion: Turk Ekonomi Bankasi AS - Teb.com

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currency deposit ratings, foreign currency debt ratings may also be constrained by the country ceiling for foreigncurrency bonds and notes; however, in some cases the ratings on foreign currency debt obligations may beallowed to pierce the foreign currency ceiling. A particular mix of rating factors are taken into consideration in orderto assess whether a foreign currency bond rating pierces the country ceiling. They include the issuer's global localcurrency rating, the foreign currency government bond rating, the country ceiling for bonds and the debt's eligibilityto pierce that ceiling.About Moody's Bank Financial Strength ScorecardMoody's bank financial strength model (see scorecard below) is a strategic input in the assessment of the financialstrength of a bank, used as a key tool by Moody's analysts to ensure consistency of approach across banks andregions. The model output and the individual scores are discussed in rating committees and may be adjusted up ordown to reflect conditions specific to each rated entity.Rating FactorsTurk Ekonomi Bankasi ASRating Factors [1] A B C D E Total Score TrendQualitative Factors (70%) DFactor: Franchise Value D+ NeutralMarket share and sustainability xGeographical diversification xEarnings stability xEarnings Diversification [2]Factor: Risk Positioning D NeutralCorporate Governance [2]- Ownership and Organizational Complexity- Key Man Risk- Insider and Related-Party RisksControls and Risk Management x- Risk Management x- Controls xFinancial Reporting Transparency x- Global Comparability x- Frequency and Timeliness x- Quality of Financial Information xCredit Risk Concentration x- Borrower Concentration x- Industry Concentration xLiquidity Management xMarket Risk Appetite xFactor: Operating Environment D NeutralEconomic Stability xIntegrity and Corruption xLegal System xFinancial Factors (30%) CFactor: Profitability C WeakeningPPI % Average RWA (Basel II) 2.07%Net Income % Average RWA (Basel II) 1.39%Factor: Liquidity C Neutral(Market Funds - Liquid Assets) % Total Assets -5.16%Liquidity Management xFactor: Capital Adequacy B+ Neutral
Tier 1 Ratio (%) (Basel II) 9.97%Tangible Common Equity % RWA (Basel II) 9.94%Factor: Efficiency D NeutralCost / Income Ratio 66.02%Factor: Asset Quality C+ WeakeningProblem Loans % Gross Loans 2.69%Problem Loans % (Equity + LLR) 14.12%Lowest Combined Financial Factor Score (9%) C-Economic Insolvency Override NeutralAggregate BFSR Score D+Aggregate BCA Score baa3/ba1Assigned BFSR D+Assigned BCA baa3[1] - Where dashes are shown for a particular factor (or sub-factor), the score is based on non-public information.[2] - A blank score under Earnings Diversification or Corporate Governance indicates the risk is neutral.© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rightsreserved.CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES AREMOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDITCOMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCHPUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'SCURRENT 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 ANENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANYESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANYOTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICEVOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARENOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'SPUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, ANDCREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDERECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDITRATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FORANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'SPUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKEITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FORPURCHASE, HOLDING, OR SALE.ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO,COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISEREPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED,REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN
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Page 3 and 4: the smooth transition to post-merge
Page 5: We assess a high likelihood of syst

Credit Opinion: Turk Ekonomi Bankasi AS - Teb.com

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