S&P lowers Albaraka Sukuk notes due to error

S&P said it corrected the issue rating on the tier 2 sukuk trust certificate issued by Albaraka Sukuk Ltd. by lowering the rating to CCC+ from B-.

Due to an error in the application of the agency’s bank hybrid capital and non-deferrable subordinated debt criteria, S&P said it initially notched down the issue rating on the sukuk from the issuer credit rating on Albaraka Turk Katilim Bankasi AS rather than from the assessment of the bank’s stand-alone credit profile.

The agency said it assesses the bank’s stand-alone credit profile at B+ and notched down the sukuk issue rating by three notches to reflect the subordinated nature of the obligations and the existence of a mandatory write-down clause.

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