TURKEY Corporate Credit Rating Non-Banking

TURKEY
Non-Banking Financial Institution
Corporate Credit Rating
International
Foreign Currency
Local Currency
FC
Outlook
LC
National
Factoring
Local Rating
Long
Term
Short
Term
BBBBBBStable
Stable
A-3
A-3
Stable
Stable
BBB+(Trk) A-3 (Trk)
Stable
Positive
Sponsor Support
Stand Alone
Foreign Currency
Local Currency
FC
Outlook
LC
2
B
BBBBBBStable
Stable
-
Sovereign*
Outlook
Analysts: Gökhan İYİGÜN/ +90 212 352 56 73
İNAN / +90 212 352 56 73
Growth Rate (%)
Market Share (%)
0.76
0.84
1.00
450.0
250.1
0.06
0.15
213.0
0.50
0.28
32.4
0.00
25.0
12.3
3.0
2.6
-50.0
ROAE (%)
ROAA (%)
0.5
200.0
102.3
-20.8
2.5
18.0
22.9
0.0
0.0
-22.0
-25.0
NPL (%)
55.1
60.0
2010
3.0
2011
4.5
2012
100.0
27.8
7.0
2013
0.0
-30.0
Equity/Assets (%)
94.0
30.0
5.7
2009
30.0
1.1
-20.5
2009
2010
Strengths
x
22.1
2011
50.0
12.1
2012
10.3
2013
Financial Data
2013*
2012*
2011*
2010*
2009*
Total Assets (000 USD)
85,622
77,529
23,310
14,154
4,180
Total Assets (000 TRY)
182,409
137,815
44,030
21,763
6,217
Equity (000 TRY)
18,856
16,687
9,726
6,040
5,844
Net Profit (000 TRY)
2,642
1,961
686
199
-1,448
Market Share (%)
0.84
0.76
0.28
0.15
0.06
ROAA (%)
2.55
2.62
2.96
0.49
-20.54
ROAE (%)
22.94
18.03
12.34
1.14
-22.00
Equity/Assets (%)
10.34
12.11
22.09
27.75
94.00
NPL (%)
7.03
4.49
2.97
5.74
55.08
Growth Rate (%)
32.36
213.00
102.31
250.07
-20.82
*End of year
*Affirmed by Japan Credit Rating Agency, JCR on July 11,2014
[email protected]
Orkun
[email protected]
KREDİ FİNANS FAKTORİNG A.Ş.
0.0
Company Overview
Kredi Finans Faktoring Anonim Şirketi (hereinafter referred to as
“Kredi Finans Faktoring”, or “the Company”), founded in 1998, operates
in the Turkish Factoring Sector and offers cash financing to sellers in return
for their receivables, based on invoices or other certifying documents
representing the domestic sales of goods and services, by undertaking
their collection within the Başaran Group since 2010. The activities of the
Company are regulated and supervised by the Banking Regulation and
Supervision Agency (BRSA).
The Company’s real person shareholding structure covers 6 individuals,
the main controlling shareholder, Mr. Hüseyin BAŞARAN (76.49%) as of
FYE2013. The Company provides domestic and recourse or non-recourse
factoring facilities through its headquarters in İstanbul with a staff force
of 34 people as of July, 2014.The Company, with a total asset size of
TRY182.41mn, had a 0.84% market share in the factoring sector worth a
total of TRY 21.80bn in FYE2013.
Constraints
Interest margin continuing to outperform that of the sector
average
x Optimum level of balanced assets and liabilities in terms of
maturity dates
x Found obtained via planned capital injection underpinning the
capitalization level
x Eased liquidity management regarding term structure of
borrowings via bond issue
x Despite the intensified competition mainly driven by from
commercial banks, factoring receivables grew by a very strong,
generates sustained profitability.
x Turkey’s SME-dominated commercial structure and recent sector
legislation together with low level of sector penetration
promising room for future sector growth
x A robust experienced management team as well as specialized
knowledge of the Turkish financial sector
Publication Date: October 9, 2014
x
x
x
x
x
x
Persistently rising levels of non-performing loans (NPLs) exert
pressure on asset quality and profitability –triggering
potential write off,
Deficiency in capitalization level consistent with sector
averages partly due to deterioration in profitability
indicators amid raised loan loss provisions as evidenced by
downward trend in interest margins of the sector- albeit the
Company outperforming the sector,
Lopsided customer concentration of factoring receivables
increasing vulnerability on asset quality,
Reversal of flow of funds from emerging markets given the
concerns over US quantitative easing, squeezing the national
currency,
Scarce operating channels compared to bank-related
companies,
Improvements needed in corporate governance principles,
“Global Knowledge supported by Local Experience”
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registered with and certified by the SPK (CMB-Capital Markets Board of Turkey), BDDK (BRSA-Banking Regulation and Supervision Agency) and internationally accepted rating
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