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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2014
150
İŞBANK
ANNUAL REPORT 2014
SECTION SIX: OTHER EXPLANATIONS
I. Explanations on the Bank’s Credit Ratings:
Rating
Outlook
(1)
Explanation
MOODY’S
Bank Financial Strength
D+
Stable Indicates that the Bank’s stand-alone financial strength is adequate.
Long-termForeign Currency Deposit
Baa3
Negative The Highest rating depending on the country ceiling for Turkey in this category.
Long-termLocal Currency Deposit
Baa3
Negative Indicates that the Bank’s credibility is adequate.
Short-termForeign Currency Deposit
P-3
-
The Highest rating depending on the country ceiling for Turkey in this category.
Short-termLocal Currency Deposit
P-3
-
Indicates that the Bank’s credibility is reasonable.
FITCHRATINGS
Long-termForeign Currency Issuer Default Rating
BBB-
Stable At investment level. Shows that the Bank’s credibility is “good”.
Long-termLocal Currency Issuer Default Rating
BBB-
Stable At investment level. Shows that the Bank’s credibility is “good”.
Short-termForeign Currency Issuer Default Rating
F3
-
At investment level. Shows that the capacity for timely payment of financial commitments is adequate.
Short-termLocal Currency Issuer Default Rating
F3
-
At investment level. Shows that the capacity for timely payment of financial commitments is adequate.
National Long-termRating
AA+ (tur)
Stable Shows high credit quality (national).
Viability Rating
bbb-
-
Shows that the Bank’s credibility is “good”. Basic financial indicators are adequate.
Support Rating
3
-
There is amoderate probability of support.
STANDARD&POOR'S
Long-termCounterparty Credit Rating
BB+
Negative Same as the FC country rating given for Turkey.
Short-termCounterparty Credit Rating
B
-
Indicates that it has the capacity tomeet its financial commitment on the obligation.
Long-termNational Scale Rating
trAA+
-
Indicates that its capacity tomeet its financial commitments on the obligation is strong.
Short-termNational Scale Rating
trA-1
-
It is the highest rating in this category and indicates that the Bank’s capacity to pay its short-termdebt is
higher than the other institutions in the country.
The dates below given are on which the Bank’s credit ratings/outlook was last updated:
Moody's: 03 June 2014, Fitch Ratings: 24 June 2014, Standard & Poor's: 11 February 2014
(1)
Outlook:
“Stable” indicates that the current rating will not be changed in the short term; “positive” indicates that the current rating is very likely to be upgraded and “negative” indicates that the
current rating is very likely to be downgraded.
II. Explanations on Special Purpose Audit and Public Audit
According to the Turkish Commercial Code 207, 438 and 439, there has not been the scope of the special audit to the Bank in the current period. At Bank BRSA, CBRT, the Capital
Markets Board, the Competition Authority is subject to public scrutiny, including public institutions such as. In relation to these inspections of public institutions, if there is a point
where disclosure to be necessary, the Bank shares the issues with the public through disclosures.
SECTION SEVEN: EXPLANATIONS ON THE INDEPENDENT AUDITORS’ REPORT
I. Explanations on the Independent Auditors’ Report:
The Bank’s unconsolidated financial statements and footnotes to be disclosed to public as of 31 December 2014 are audited by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali
Müşavirlik Anonim Şirketi (the Turkish member firm of KPMG International Cooperative, a Swiss entity) and except for the effect of the matter on the financial statements described
in the fourth paragraph of the audit report dated 30 January 2015, the unconsolidated financial statements present fairly, in all material respects, the financial position of Türkiye İş
Bankası AŞ as of 31 December 2014 and the result of its operations and cash flows for the year then ended.
II. Explanations and Footnotes of the Independent Auditors
There are no significant issues or necessary disclosures or notes in relation to the Bank’s operations other than those mentioned above.