Moody'son Sept. 26 concluded its review for downgrade of 17 Turkish financialinstitutions, downgrading the long-term debt and deposit ratings of severalentities.
Moody'sdowngraded to Ba1 from Baa3 the long-term foreign- and local-currency debt andlocal-currency deposit ratings of T.C. Ziraat Bankasi AS, , with stableoutlooks. Isbank's baseline credit assessment was confirmed at "ba2",while those of Ziraat Bank and Garanti Bankasi were downgraded to"ba2" from "ba1".
Therating agency also downgraded to Ba1 from Baa3 the long-term debt andlocal-currency deposit ratings of Akbank TAS and Türkiye Vakiflar Bankasi TAO. The foreign-currencylong-term debt and local-currency deposit ratings of and weredowngraded to Ba1 from Baa3. The banks carry stable outlooks. The baselinecredit assessments of the four lenders were downgraded to "ba2" from"ba1".
Theagency lowered the long-term debt and issuer ratings of andExport Credit Bank of Turkey AS to Ba1 from Baa3, with stable outlooks. TürkiyeSinai Kalkinma's baseline credit assessment was confirmed at "ba2".
Thelong-term local-currency deposit ratings of Türk Ekonomi Bankasi AS and were downgraded to Ba1from Baa3, with stable outlooks. Türk Ekonomi Bankasi's baseline creditassessment was downgraded to "ba3" from "ba2", while thatof ING Bank was downgraded to "b1" from "ba3".
Moody'scut Sekerbank TAS'long-term local- and foreign-currency deposit ratings to B1 from Ba3, with anegative outlook. Its baseline credit assessment was confirmed at"b1".
Moody'sconfirmed FinansbankAS' foreign-currency long-term debt and local-currency depositratings at Ba1, with a stable outlook. The bank's foreign-currency depositrating was downgraded and is constrained by the sovereign ceiling at Ba2. Thedeposit ratings of DenizBankAS were confirmed at Ba2, with a negative outlook. Both banks'baseline credit assessments were confirmed at "ba3".
Furthermore,the rating agency downgraded HSBCBank AS' foreign- and local-currency long-term deposit ratings toBa3 from Ba2, with a stable outlook, and its baseline credit assessment to"b2" from "b1". Meanwhile, the agency confirmed ' long-termdeposit ratings at Ba3, with a stable outlook, and its baseline creditassessment at "b2".
Moody'sconfirmed the long-term local-currency deposit ratings of at Ba1, anddowngraded the long-term foreign-currency deposit rating to Ba2 from Ba1. Theoutlook on the long-term deposit ratings is stable. The bank's baseline creditassessment was downgraded to "b1" from "ba3", while itsadjusted baseline credit assessment was confirmed at "ba1".
Moody'ssaid the downgrades were due to a combination of the weakened operatingenvironment; increased downside risks to funding and liquidity; and/or thereduced capacity of the government to provide support in case of need, asimplied by the recent downgradeof Turkey's sovereign rating.