trending Market Intelligence /marketintelligence/en/news-insights/trending/2kS8_4EXcszGsFYVCuLoZw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Moody's downgrades ratings of 18 Turkish banks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive

South State CenterState MOE Shows Even The Strong Need Scale To Thrive

Talking Bank Stocks, Playing The M&A Trade With Longtime Investor

Report: Kashkari Says Fed In Holding Pattern But Rate Cut Still Possible


Moody's downgrades ratings of 18 Turkish banks

Moody's on June 19 downgraded several ratings of 18 Turkish banking institutions, following a recent similar action on the sovereign.

Moody's downgraded the long-term local- and foreign-currency bank deposit ratings of Türkiye Halk Bankası AŞ, Türkiye İş Bankası AŞ, DenizBank AŞ and HSBC Bank AŞ to B3 from B2. The same ratings of Odea Bank AŞ and Şekerbank TAŞ were downgraded to Caa1 from B3 and Caa2 from Caa1, respectively.

The rating agency downgraded to B3 from B2 the long-term foreign-currency bank deposit ratings of Akbank TAŞ, Alternatifbank AŞ, ING Bank AŞ, QNB Finansbank AŞ, T.C. Ziraat Bankası AŞ, Türk Ekonomi Bankasi AS, Türkiye Garanti Bankası AŞ, Türkiye Vakıflar Bankası TAO and Yapı ve Kredi Bankası AŞ.

The long-term local-currency bank deposit ratings of Akbank, Ziraat Bank, Garanti Bank, VakifBank and Yapı ve Kredi Bankası were downgraded to B2 from B1. Similar ratings of Alternatifbank, ING Bank, QNB Finansbank and Türk Ekonomi Bankasi were downgraded to B1 from Ba3.

Moody's downgraded the long-term local- and foreign-currency issuer ratings of Türkiye İhracat Kredi Bankası AŞ, or Export Credit Bank of Turkey, Nurol Yatırım Bankası AŞ,or Nurol Investment Bank and Türkiye Sınai Kalkınma Bankası AŞ to B2 from B1, Caa2 from Caa1 and B3 from B2, respectively.

The agency downgraded the local- and foreign-currency senior unsecured debt ratings of Garanti Bank to B2 from B1.

The foreign-currency senior unsecured debt ratings of Akbank, Türk Eximbank, Ziraat Bank, VakifBank and Yapı ve Kredi Bankası were downgraded to B2 from B1. Moody's downgraded the same ratings of Halkbank, Isbank and Türkiye Sınai Kalkınma Bankası to B3 from B2 and of QNB Finansbank to B1 from Ba3.

All the above ratings carried a negative outlook, according to Moody's.

Additionally, the agency downgraded the baseline and adjusted baseline credit assessment of Akbank and Türk Eximbank to "b3" from "b2," of Nurol Investment Bank, Sekerbank and Halkbank to "caa2" from "caa1," of Odea Bank, Isbank and Türkiye Sınai Kalkınma Bankası to "caa1" from "b3," of Ziraat Bank to "caa1" from "b2" and of VakifBank to "caa2" from "b3."

The baseline credit assessments of Alternatifbank, DenizBank and ING Bank were downgraded to "caa1" from "b3". HSBC Bank's baseline credit assessment was downgraded to "caa2" from "caa1," while the same ratings of Garanti Bank, QNB Finansbank, Türk Ekonomi Bankasi and Yapı ve Kredi Bankası were downgraded to "b3" from "b2."

The adjusted baseline credit assessments of Alternatifbank, ING Bank, QNB Finansbank and Türk Ekonomi Bankasi were downgraded to "b1" from "ba3." Moody's downgraded the adjusted baseline credit assessments of DenizBank and HSBC Bank to "b3" from "b2," while the same ratings of Garanti Bank and Yapı ve Kredi Bankası were downgraded to "b3" from "b1" and "b2" from "b1," respectively.

The agency downgraded the long-term local- and foreign-currency counterparty risk ratings of Akbank, Türk Eximbank, Ziraat Bank, Garanti Bank, VakifBank and Yapı ve Kredi Bankası to B1 from Ba3. Similar ratings of Alternatifbank, ING Bank, QNB Finansbank and Türk Ekonomi Bankasi were downgraded to Ba3 from Ba2, of DenizBank, HSBC Bank, Halkbank, Isbank and Türkiye Sınai Kalkınma Bankası to B2 from B1, of Nurol Investment Bank and Sekerbank to Caa1 from B3 and of Odea Bank to B3 from B2.

The long-term counterparty risk assessments of Akbank, Türk Eximbank, Ziraat Bank, Garanti Bank, VakifBank and Yapı ve Kredi Bankası were downgraded to B1(cr) from Ba3(cr). Similar ratings of Alternatifbank, ING Bank, QNB Finansbank and Türk Ekonomi Bankasi were downgraded to Ba3(cr) from Ba2(cr) and of DenizBank, HSBC Bank, Halkbank, Isbank and Türkiye Sınai Kalkınma Bankası to B2(cr) from B1(cr). The agency also downgraded the long-term counterparty risk assessments of Nurol Investment Bank and Sekerbank to Caa1(cr) from B3(cr) and of Odea Bank to B3(cr) from B2(cr).

Meanwhile, Moody's downgraded the long-term local-currency national scale issuer ratings of Nurol Investment Bank and Sekerbank to B1.tr from Ba3.tr.

The agency affirmed several other ratings of all 18 Turkish lenders.

Moody's noted the downgrade mainly reflects a significant increase in external vulnerability for Turkey, exposing its banks to a higher risk of sudden shift in investor sentiment and deposit behavior. The rating action is also based on a higher risk of more extreme government policy measures and a more prolonged deterioration of the country's operating environment, Moody's noted.