A STRONG FOUNDATION OF
ECONOMIC FUNDAMENTALS

With a Ba3 global scale rating from Moody's International Sub-Sovereign and a BB- rating from Fitch Ratings International Public Finance, TOKİ is seen as a stable potential investment. A crucial plank in the social welfare program of the last three administrations, the Turkish Government's strong support guarantees TOKİ's financials. Moody's notes TOKİ offers a strong business model that encourages efficiency and careful management of any risk from exposure that comes its way. FitchRatings gives TOKİ a positive key rating based on several factors:

. TOKİ reports directly to the Prime Minister's Office rather than being part of the general administrative bureaucracy.

. The Treasury must approve any foreign borrowing that TOKİ may need. All of the Administration's accounts are audited by the High Council Audit Office, which is attached to parliament. TOKİ must write monthly reports for the Prime Minister's Office, which can also appoint inspectors for the Administration if necessary.

. Though TOKİ is a non-profit government administration, it has reported net profit for the last six years.

TOKİ's positive rating is also tied to several other important factors. Its well-established non-profit business model avoids many of the common pitfalls of institutionalized bureaucracy. Legislation has been passed to ensure the Administration is efficient in the use of resources and innovative in the methods it uses to finance its operations.

By adjusting the rate of inflation on long term receivables twice a year, TOKİ has addressed the issue of potential fluctuation in the value of the Turkish lira. As a non-profit government administration operating well into the black rather than deep in the red, the Administration has created a structure for servicing debt that effectively protects the debtor, TOKİ and outside investors.

TOKİ's positive raiting is tied to several important factors. Its well-established non-profit business model avoids many of the common pitfalls of institutionalized bureaucracy.