JCR Eurasia Rating, assigned Ekspo Faktoring A.Ş. Long Term National Credit Rating of ‘A (Trk)’ and Short Term National Credit Rating of ‘A-1 (Trk)’ with ‘Stable’ outlooks on both ratings. The Long Term International Foreign and Local Currency Ratings are affirmed as ‘BBB-’, on par with the country ceiling.
The Factoring Sector was marked by a high level of sensitivity to fluctuations in macroeconomic circumstances in 2018. The increase in non-performing loans, collection difficulties, and increased funding costs mainly resulted from rapid credit volume contraction in the banking sector, where the funding requirements were met to a great extent. The effects of this trend could continue in 2019 and the growth trend of the sector could be limited in terms of both the number of customers and transaction volume. Considering that the main income of factoring companies is from 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 and the negative impact of high levels of unemployment on the factoring sector along with weakening demand, deserve to be closely monitored. 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.
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