OREANDA-NEWS. Fitch Ratings has assigned Turkiye Sinai Kalkinma Bankasi A.S.'s (TSKB) new USD350m senior unsecured notes issue an expected Long-Term rating of 'BBB-(EXP)'.

The final rating is contingent upon the receipt of final documents conforming to information already received.

Management expects that the issue, which would be the first drawdown under the bank's USD750m bond programme, will be placed in 2Q15. No put/call options are envisaged.

KEY RATING DRIVERS
The expected issue rating is in line with TSKB's Long-Term Issuer Default Ratings (IDR) of 'BBB-'. The bank's IDRs in turn reflect its policy role and are based on a high probability of support, if required, from the Turkish government.

TSKB is 50%-owned by the group of Turkiye Is Bankasi A.S. (BBB-/Stable) and performs a public mission, defined in its statute, of attracting foreign capital investments to Turkey and participating in the development of the country's capital markets.

RATING SENSITIVITIES
As the issue is rated in line with TSKB's Long-term IDRs, the rating is primarily sensitive to changes to the IDRs. TSKB's IDRs are sensitive to a change in Turkey's sovereign ratings and also to a material reduction in the level of state-guaranteed debt or an erosion of its policy role, either of which Fitch would consider as a reduction in the state's commitment to TSKB, and therefore potentially an indication of a reduced propensity to provide support, in case of need. However, this is not Fitch's base case.

TSKB's other ratings are unaffected by this action, and are as follows:
Long-term IDR: 'BBB-'; Outlook Stable
Short-term IDR: 'F3'
Local currency Long-Term IDR: 'BBB'; Outlook Stable
Local currency Short-Term IDR: 'F3'
Support Rating: '2'
Support Rating Floor: 'BBB-'
National Long Term Rating: 'AAA(tur)'; Outlook Stable