The credit standing company Fitch introduced Tuesday it upgraded Türkiye Wealth Fund’s (TWF) score to “B+” and its outlook to optimistic in a transfer that adopted the historic revision of the nation’s score to “B+” earlier this month.
The fund’s earlier score was “B,” the credit standing company recalled in a press release.
The score company cited a number of drivers behind the improve, together with consideration “that extraordinary support from the Turkish government to the TWF would be ‘Virtually Certain’ in case of need,” decision-making and oversight being “very strong,” “TWF’s strategic importance for the national government’s long-term economic agenda” and its latest inaugural $500 million bond issuance.
“TWF’s highly strategic public policy role was demonstrated by the improvement of core capital adequacy ratios of key state-owned banks in TWF’s portfolio by injecting a total of TL 184.2 billion (around $9.6 billion as of March 2023), consolidation of state-owned insurance and pension companies in 2020-2022 to create a regional leader in the sector,” Fitch mentioned within the report.
“TWF’s acquisitions consist of controlling equity stakes in the technology and telco sector such as Turkcell Iletişim Hizmetleri A.S. (26.2%) and Turk Telekomünikasyon A.S. (55%) for economies of scale of key strategic assets. TWF has also made investments in the real estate sector to create an international financial hub (Istanbul Finance Center),” it added.
The Türkiye Wealth Fund is the strategic funding arm and the fairness options supplier of the Republic of Türkiye. It is an asset-backed growth fund that focuses on the expansion targets of its portfolio firms by way of value-creation packages, investments in key sectors and visionary tasks to help the financial growth within the nation.
TWF has 30 firms, two licenses and actual property in seven sectors in its portfolio.
Fitch raised Türkiye’s score to “B+” from “B” early in March and revised its outlook to optimistic from secure saying the transfer “reflects increased confidence in the durability and effectiveness” of insurance policies carried out for the reason that pivot after final 12 months’s May elections, together with greater-than-expected frontloading of financial coverage, in lowering macroeconomic and exterior vulnerabilities.
Source: www.dailysabah.com