Source Issuer Rating
Scope Greece BB+
Scope Austria AAA
Scope Georgia BB
Scope Italy BBB+
Scope Spain A-
RP - 2021-09-01
September Sovereign Rating Updates

RP - 2021-08-02
August Sovereign Rating Updates

RP - 2021-05-18
2020 EU rating market shares


September Sovereign Rating Updates

We have updated our sovereign calendar to cover the month of September 2021.
During this period, 6 to 9 rating agencies have scheduled sovereign rating updates.
On September 3rd, Estonia ratings will be reviewed by 3 agencies (DBRS, Fitch and Moodys)
The ratings on Spain will be reviewed by 4 agencies (Axesor, DBRS, Moodys and S&P) on 2 Fridays (September 3rd and September 17th).

August Sovereign Rating Updates

We have updated our sovereign calendar for the month of August 2021. On average 16 rating actions are scheduled every Friday published by 6 to 7 credit rating agencies.
On August 13th, Moodys and S&P have both scheduled reviews of Lithuania.

2020 EU rating market shares

According to the EU Regulation on Credit Rating Agencies, ESMA registered agencies need to publish an Annual Transparency report, which includes high level information on revenues and staff employed.
While the United Kingdom withdraw from the European Union in January 2020, the transition period until end 2020 (where EU Regulations continued to be applicable in the UK) resulted in some agencies publishing their results for both the UK and EU together.
S&P reports total revenues of EUR 649 mln (up 12% compared to 2019), Moodys generated EUR 507 mln (up 1%) and FitchRatings achieved EUR 288 mln (up 3%). These dominant 3 agencies take around 91,7% of the market (including assumptions for undisclosed revenues).
In terms of market segments, the wider corporate market segment (covering insurances, financial and non-financial companies) accounts for more than EUR 1,1 Bill in Revenues, the Structured Finance segments reaches approx. EUR 240 mln and the sovereign segment around EUR 170 mln.
We estimate total staff at approx. 2950 employees (including assumptions for not disclosed staff). The EU and the UK account each for half of the staff. Fitch employs a total of 924 people, followed by Moodys with 655 and S&P with 543. About 1990 people are directly involved in rating activities and additional 107 in model development/review. In terms of market segments, the broad corporate market segment counts 976 analysts, 427 are active in SF, 189 in the Sovereign market – 395 analysts work across market segments or provide rating support activities.

Planned Sovereign Rating Updates

Based on the Sovereign Rating Review calendars of 13 Credit Rating Agencies, we have updated our site to display the information for the next 3 weeks until end March 2021. During this period, a total of 67 rating actions by 10 agencies are on the agenda.
Cyprus and Portugal shall be reviewed by three agencies during this period. Austria will be reviewed by S&P and Scope on March 12th, Sweden by Moodys and DBRS on March 26th.

Upcoming Sovereign Rating Reviews

Based on the Sovereign Rating Review calendars of 13 Credit Rating Agencies, we have updated our site to display the information for the next 3 weeks until early March 2021. During this period, a total of 66 rating actions by 10 agencies are on the agenda.
Estonia will be in focus of the attention as S&P, CRAG, DBRS and Moodys have all scheduled reviews during these 3 weeks. Denmark is reviewed by Fitch and S&P on February 26th and Spain by DBRS and Moodys on March 5th, 2021.

OECD modifies country risk classification of Bahrain and Oman

Within the framework of the OECD country risk classification, Bahrain and Oman were both downgraded from 5 to 6.
Until January 2016, Oman was rated 2 and since then faced downgrades in nearly on a yearly basis.
Bahrain has shown the pattern pattern over a longer period. Until April 2010, Bahrain was rated 2, downgrades occuring thereafter in January 2011, February 2019 and Janaury 2021.

Scheduled Sovereign Rating Reviews

Based on the Sovereign Rating Review calendars of 13 Credit Rating Agencies, we have updated our site to display the information for the next 3 weeks until mid February 2021. During this period, a total of 55 rating actions by 10 agencies are on the agenda. Lithuania will be in focus of the attention as Fitch, Scope, Moodys and S&P have all scheduled reviews during these 3 weeks.

Site updated to reflect final BREXIT

As the United Kingdom withdrew from the European Union end of January 2020 and that the transition period ended end December 2020, we have updated our site to cover Credit Rating Agencies registered in the United Kingdom and registered with the FCA.
Additionally, we have updated the information relative to the European Union, where ESMA has withdrawn the registration of UK based entities.

2021 Global Sovereign Ratings Review calendar

Base on regulatory disclosures applicable in the European Union and the United Kingdom, we have compiled our cross-agency calendar of scheduled rating reviews for 2021.

ESMA publishes EU rating agencies market shares report

On December 14th, ESMA published its yearly market shares report for ESMA registered credit rating agencies.
According to ESMA, based on revenues, S&P Global Ratings has 40,40% market share, Moody's 33,12% and Fitch 17,55%.

OECD updates country risk classification for 3 countries

Effective October 16th, 2020, the Country Risk Classification of the Participants to the Arrangements on Officially Supported Export Credit within the framework of the OECD was modified as follows:
- Aruba: from 4 to 5
- Bahamas: from 3 to 4
- Suriname: from 6 to 7.

The Indian Rating market

We have updated our Country Regulatory page relating to India.

Inda has a well developed rating market with 7 registered agencies generating approximaterly EUR 110 mln in revenues in 2019.
Based on the probability of default benchmarks per rating catergory used in India, we have derived an indicative mapping of Indian local scale ratings to the international rating scale.
Additionally, for our registered users, we provide information on the Indian rating market and market shares based on regulatory disclosures as of March 2020.

OECD updates country risk classification

On June 25th, 2020, the OECD has published updated Country Risk Classification with the following changes: :

Botswana: from 2 to 3
Costa Rica: from 3 to 4
Ecuador: from 6 to 7
Hong Kong: from 2 to 3
Maldives: from 6 to 7
Mongolia: from 6 to 7
Namibia: from 5 to 6

Global Sovereign Rating calendar now available

Based on the Sovereign rating calendars of ESMA registered Credit Rating Agencies, we have published today a single report covering all rating actions.

JCR Eurasia Rating has affirmed the credit ratings of Ak Faktoring A.Ş. and “Cash Flows arising from Bond Issuances” as ‘BBB+ (Trk)’ on the Long Term National Scale and A-2 (Trk) on the Short Term Nat

Istanbul – March 15, 2018
JCR Eurasia Rating has affirmed a Long Term National Credit Rating of “BBB+ (Trk)” and a Short Term National Credit Rating of “A-2 (Trk)” for Ak Faktoring A.Ş. along with “Stable” outlooks on both ratings.
The Factoring Sector is marked by a high level of vulnerability to fluctuations in macroeconomic circumstances and instability. Management policies in the sector are strongly influenced by the changes in economic outlook and regulatory procedures from the Banking Regulation and Supervision Agency (BRSA). On the other hand, in line with the undertaken reforms, the sector’s legal infrastructure has improved with regards to effective surveillance and control. As such, the mandatory installation of information, risk measurement, and internal control systems have made a positive contribution to the improvement of the sector’s institutional set-up and to the quality, standardization, and transparency of financial reporting practices and facilitated fair competition. Considering that the main income of factoring companies is the real sector, the effects of the growth environment supported by the volatility and incentive policies created by the foreign and domestic economic, political, and geopolitical developments in the markets on the factoring sector deserve to be closely monitored.
Ak Faktoring was established in 1992 under the name ‘Ak Faktoring Hizmetleri Ticaret Anonim Şirketi’. In 2011,parallel with the change in partnership structure which was purchased by Altınhas Holding with foundations going back to the 1950s, activities were again accelerated. The Company has operated in a sector mainly constituted of bank related institutions since 2012 under the title ‘Ak Faktoring A.Ş.’ and currently maintains activities through non-branch office structure on a local basis. The Company continues to meet the credit requirement of mainly commercial companies and SME-based companies.
Global and local macroeconomic pressures, high foreign currency movements, and uncertainties continue to influence the financial structure of the real sector and continues to pressure the sector’s asset quality. Although the Company attempts to soften the pressure generated by its high customer concentration through effective risk management practices, asset quality is suppressed by increased impaired receivables, the deteriorating debt-service performance of real sector companies, and above sector averages NPL ratio. The inability to make progress in market share which grew below sector averages; high dependency on external financing increasing financial costs and affecting profitability; and pressures internal equity generation capacity are the issues that put stress on the short and long term notes. In addition, the growth in the number of customers to be widespread in the market, improvement in receivable portfolio granularity to reduce the concentration exposure, asset and turnover development, the continued effects of continuing economic and political turbulence, and tensions on real sector’s asset quality and NPL level are issues that will be kept under review by JCR Eurasia Rating in the following periods. On the other hand, the effect of the strong collateral level and high transaction volume on asset quality; above-sector profitability ratios; relieved liquidity management for the following periods through diversification of its funding structure by probable bond issues against the sectoral disadvantage created by the limited alternative financing resources; maintenance of above sector interest margins strengthening revenue; increasing equity level against the sector’s decreasing trend; Altınhas Holding's wide range of activities and Group support in both financial and operational points; the high probability of realization relating to the Company’s future growth plan; and generation of internal resources and cash flows to meet interest expenses are the principle factors behind the affirmation of the Company’s Long and Short Term Outlook as ‘Stable’ and Long Term National Grade as ‘BBB+ (Trk)’. No separate rating report has been compiled as the resources obtained from the bond issue will be carried in the Company’s balance sheet and has been subject to analysis in the corporate credit rating report. The planned bond issue carries no difference in comparison to the Company’s other liabilities with respect to its legal standing and collateralisation. As such, the notations outlined in the corporate credit rating report also reflect the issue rating but do not cover any structured finance instruments.
On the other hand, it is considered that the major controlling legal entity shareholder, Altınhas Holding A.Ş., along with real person shareholder, the Altınbaş Family, have the willingness and experience to ensure long term liquidity and equity within their financial capability when required and to provide efficient operational support to Ak Faktoring A.Ş. Therefore, the Company's Sponsor Support grade has been affirmed as (2) in JCR Eurasia Rating’s notation.
On the other hand, taking into account the Company’s increasing equity level, transaction volume, asset growth and quality, efficient risk management and collateral level despite the increasing trend in NPL and concentration risk, receivables portfolio, market popularity and ease of access to funding resources , we, as JCR Eurasia Rating, are of the opinion that Ak Faktoring A.Ş. has reached the level of adequate experience and facilities to manage the incurred risks on its balance sheet regardless of any assistance from the shareholders, provided that it improves its current customer level, efficiency and existing macroeconomic level in the market. Within this context, the Stand Alone grade of the Company has been affirmed as (B) in the JCR Eurasia Rating notation system.
For more information regarding the rating results, you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mrs. Merve Hayat.
Administrative Board