OREANDA-NEWS. Fitch Ratings has affirmed Vakifbank DPR Finance Company's (VB DPR) Series 2014-A, 2014-B, 2014-C, 2014-D, 2014-E, 2014-F and 2014-G at 'A-' Outlook Stable.

VB DPR is a securitisation of diversified payment rights (DPRs) originated by Turkiye Vakiflar Bankasi T. A.O (Vakifbank; BBB-/Stable/F3). DPRs are payment orders processed by banks that mainly reflect payments due on the export of goods and services, capital flows and personal remittances. VB DPR has purchased all present and future DPRs denominated in dollar, euro and pound from Vakifbank, financed through issued notes that are secured on the DPRs.

KEY RATING DRIVERS

The affirmations follow Fitch's downgrade of Vakiflar's Long-Term Local Currency (LTLC) Issuer Default Ratings (IDR) to 'BBB-' from 'BBB' with Stable Outlook. For more detail see Fitch Takes Action on 15 Turkish Banks Following Sovereign Criteria Change, dated 28 July 2016 at www. fitchratings. com.

Our going concern assessment (GCA) score on Vakifbank remains unchanged at GC1, indicating its importance to the Turkish banking system as the sixth-largest bank in the Turkey and also its state support. Vakifbank had unconsolidated assets of USD69.1bn at March-2016, representing about 9.8% of total deposits and 8.9% of total system assets, according to the Banks Association of Turkey.

Fitch has applied a three-notch uplift to VB DPR's ratings over Vakifbank's LTLC IDR of 'BBB-'. The notching uplift is supported by the GCA score of 1; the stability, strength and diversification of the DPR flows; the size of the total outstanding notes relative to Vakifbank's overall indebtedness; and debt service coverage ratios (DSCRs).

The monthly DSCR debt service coverage ratio, excluding Turkish flows, was 44x as of end - June 2016. Fitch tested the sustainability of coverage under various scenarios, including FX - and interest-rate stresses and a reduction in remittances at a given time. The flows are healthy and the DSCR is adequately above coverage-related trigger levels set out in the transaction documents.

RATING SENSITIVITIES

The most significant variables affecting the transaction's ratings are the credit quality of the bank, the impact of the parent on the bank's LTLC IDR and the GCA score. Coverage levels are also a key input, however the DSCR has been consistently high, and therefore the transaction should be able to withstand a significant decline in cash flows without affecting the ratings. Nevertheless, a change in any of these variables will be analysed for their impact on the transactions' ratings.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the information it has received about the performance of the DPR programme. There were no findings that were material to this analysis. Fitch has neither requested any third party assessment of the information about DPR flows nor conducted a review of origination files because there is no existing asset portfolio to assess in future flow transactions.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.