JCR Eurasia Rating has affirmed the credit rating of Creditwest Insurance Ltd. as ‘A+ (Trk)’ on the Long Term National scale and as ‘BBB-’ on the Long Term International Scale along with a ‘Positive’ outlook on the Long Term National Scale

JCR Eurasia Rating has affirmed the credit ratings of “Creditwest Insurance Ltd.” as ‘A+ (Trk)’ on the Long Term National Scale and ‘A-1 (Trk)’ on the Short Term National Scale and has assigned a ‘Positive’ outlook on the Long Term National Scale. JCR Eurasia Rating has also affirmed the Long Term International Foreign Currency and Local Currency ratings as ‘BBB-’. Other notes and details of the ratings are given in the table below:

Long Term International Foreign Currency : BBB- / (Stable Outlook) Long Term International Local Currency : BBB- / (Stable Outlook) Long Term National Local Rating : A+ (Trk) / (Positive Outlook) Short Term International Foreign Currency : A-3 / (Stable Outlook) Short Term International Local Currency : A-3 / (Stable Outlook) Short Term National Local Rating : A-1 (Trk) / (Stable Outlook) Sponsor Support : 2 Stand Alone : A

Creditwest Insurance Ltd., providing insurance services in full integration with Creditwest Bank under the roof of the prominent Turkish conglomerate Altınbaş Grup, is one of the market leaders operating in the TRNC non-life insurance sector. The Company maintained its previous improvement in core business activities in the completed fiscal year through the effective use of intra-group synergy and the network of Creditwest Bank. Accordingly, the Company increased its market efficiency and maintained its position in the top rankings regarding premium production.

Creditwest Insurance Ltd. operates in a TRNC Insurance Sector marked by the attempt to increase the control and efficiency of sector activities through complementary regulations, shortages in consolidated sector data processing, ongoing intense competition due to excessive number of companies and sector structure involving a high product concentration. On the other hand, the Company enjoys the advantages of being a bank-affiliated Company with respect to its market recognition, access to the client network together with customer base, liquidity and funding costs.

Although the Company’s asset size, equity level and liquidity ratios were suppressed by the dividend payment realized in the completed fiscal year, they maintained their levels meeting legal requirements and the upward pressure on the risk level remained limited thanks to the Company’s robust and reputable shareholding structure. The Company managed to preserve the above sector standing of its profitability ratios restrained by increasing loss ratio and to enhance its profit generation capacity through improving premium production and conversion ratio (net premium generation capacity) together with evolving portfolio structure in favor of segments with relatively low loss ratio levels, displaying a ‘Positive’ outlook for the upcoming periods.

JCR Eurasia Rating continues in its opinion that the major controlling shareholder, Creditwest Bank Ltd., and members of the Altınbaş Family have the willingness and experience to ensure long term liquidity and equity within their financial capabilities when required and to provide efficient operational support to Creditwest Insurance Ltd.. In this regard, the Company's Sponsor Support grade has been affirmed as (2).

When the Company’s continuously improving core business volume, evolving portfolio structure with its contribution to profit generation capacity, asset size and quality, market share, profitability ratios, organizational structure and equity level are taken into account, we, as JCR Eurasia Rating, are of the opinion that Creditwest Insurance Ltd. has reached the level of adequate experience and facilities to manage the incurred risks on its balance sheet regardless of any assistance that may be provided by the shareholders, provided that it maintains its effectiveness in the market. Within this context, the Stand Alone grade of the Company has been affirmed as (A) in the JCR Eurasia Rating notation system.

For more information regarding the rating results you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mr. Gokhan IYIGUN.

JCR EURASIA RATING

Administrative Board