...Support Drives Ratings: The Issuer Default Ratings (IDRs) of Ak Finansal Kiralama A.S. (Aklease) are aligned with those of its parent, Akbank T.A.S. (BB+/Stable). Fitch Ratings considers Aklease to be a core subsidiary of Akbank, given the entities' shared branding and integration, and Aklease's role as the group's sole provider of leasing products. Aklease accounted for a small 1.9% of the group's consolidated assets at end-1H17. Capital Generation Lags Growth: Aklease increased its pace of growth in 2016-1H17, in line with the leasing sector, which was largely due to foreign-currency (FC) balance-sheet inflation amid the depreciation of the Turkish lira. With full profit retention, capital generation still lags active growth and capitalisation has deteriorated gradually. Aklease's debt/tangible equity ratio of 5.5x provides it with a safety margin for future growth. Reasonable Asset Quality: Non-performing receivables (NPLs; receivables overdue by 150 days) are consistently below the...
