Fitch Keeps Turkey's ABank LTFC IDR 'BB-' On Watch Positive

The following is a press release from Fitch Ratings:

Fitch Ratings-London/ Istanbul/ New York- 30 July 2007: Fitch Ratings ismaintaining Alternatifbank A.S.'s ("ABank") Long-term ("LT") foreign currencyIssuer Default Rating ("IDR") 'BB-' (BB minus), LT local currency IDR 'BB' andNational LT 'AA(tur)' rating on Rating Watch Positive. At the same time, it hasaffirmed the bank's other ratings at ST foreign and local currency IDR 'B',Individual 'D' and Support '3'.

ABank's LT IDRs, National LT and Support ratings reflect the moderate supportfrom its majority shareholder, the Anadolu Group, in case of need. The WatchPositive status was put in place in November 2006 following Alpha Bank's ("Alpha", rated 'A-' (A minus)/'F2', Stable Outlook) announcement that it was intalks with the Anadolu Group with a view to establishing a 50/50 holdingcompany. This company would ultimately control all the financial assets ofAnadolu Group, including ABank. Should this transaction occur, with finalisationanticipated within 2007, Fitch believes ABank's foreign and local currency IDRsand National Long-term ratings could benefit from additional support availablefrom Alpha. Upside potential on the FC IDR will, however, be constrained byTurkey's 'BB' Country Ceiling and the LC IDR is likely to be rated two notcheshigher than the Sovereign Rating.

ABank's Individual rating reflects the risks related to the rapid loan growthin a volatile operating environment, the bank's concentrated loan portfolio andlimited franchise. These are counterbalanced by its improving asset quality andsound profitability.

ABank saw its assets grow 36% in 2006, mainly through a rapid 51% increase inloans. Although ABank is growing faster than its peers, Fitch believes that anyadverse impact of such growth is likely to be limited, as asset quality, marginsand risk measures are also improving. Contrary to its peers and the rest of thesector, ABank's net interest margin ("NIM") improved in 2006 to 6.8% from 5.9%,due to a favorable asset mix and variable-rate lending. Asset quality measuresalso improved with non-performing loans ("NPLs") declining to 2.73% of loans (2005: 4.62%) with the sale of NPLs to Anadolu Group.

ABank is 77%-controlled by Anadolu Endustri Holding ("AEH") and 17% by otherAnadolu Group companies, with the balance publicly quoted. AEH is the holdingcompany for a large part of the Anadolu Group's operating subsidiaries,including two rated subsidiaries, namely Anadolu Efes Biracilik ve Malt SanayiiA.S. ('BB'/Outlook Stable) and Coca-Cola Icecek ('BB'/Outlook Stable).

Contact: Levent Topcu, Gulcin Orgun Istanbul, Tel: +90 212 279 1065, EdThompson, New York, +1 212 908 0364.

Media Relations: Hannah Warrington, London, Tel: +44 (0) 207 417 4222.

Fitch's rating definitions and the terms of use of such ratings are availableon the agency's public site, www.fitchratings.com. Published ratings, criteriaand methodologies are available from this site, at all times. Fitch's code ofconduct, confidentiality, conflicts of interest, affiliate firewall, complianceand other relevant policies and procedures are also available from the 'Code ofConduct' section of this site.

(END) Dow Jones Newswires 07-30-07 1119ET Copyright (c) 2007 Dow Jones & Company, Inc.