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Moody's takes various ratings actions on 17 Turkish banks

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Moody's takes various ratings actions on 17 Turkish banks

Moody's on March 9 took various rating action on 17 Turkish banks following the downgrade of Turkey's government debt rating to Ba2 with a stable outlook from Ba1 with a negative outlook.

Among other ratings actions, the agency downgraded the long-term foreign-currency senior unsecured debt and local-currency deposit ratings to Ba2 from Ba1, the long-term foreign-currency deposit ratings to Ba3 from Ba2 and baseline credit assessments to "ba3" from "ba2" of Türkiye Is Bankasi AS, T.C. Ziraat Bankasi AS, Akbank TAS and Yapi ve Kredi Bankasi AS.

The outlooks on long-term foreign-currency senior unsecured debt and local-currency deposit ratings of Isbank and Yapi ve Kredi were negative, while those of T.C. Ziraat Bankasi and Akbank were changed to stable from negative.

Also downgraded were Türkiye Garanti Bankasi AS' long-term foreign- and local-currency senior unsecured debt and local-currency deposit ratings to Ba2 from Ba1 and its foreign currency deposit rating to Ba3 from Ba2, with the outlooks on the ratings changed to stable from negative. The bank's baseline credit assessment was downgraded to "ba3" from "ba2".

Türkiye Vakiflar Bankasi TAO's long-term foreign-currency senior unsecured debt and local-currency deposit ratings were also lowered to Ba2 from Ba1 and its long-term foreign-currency deposit rating to Ba3 from Ba2, with the outlooks changed to stable from negative. The bank's baseline credit assessment was downgraded to "b1" from "ba2".

Moody's also downgraded Türkiye Halk Bankasi AS' long-term foreign-currency senior unsecured debt and long-term foreign- and local-currency deposit ratings to Ba3 from Ba2 with a negative outlook, and its baseline credit assessment to "b2 from "b1".

The rating agency, meanwhile, affirmed DenizBank AS's local-currency long-term deposit ratings and baseline credit assessment at Ba2/ba3 and downgraded its long-term foreign-currency deposit rating to Ba3 from Ba2. The outlooks on the debt and deposit ratings were negative.

Also affirmed were HSBC Holdings PLC unit HSBC Bank AS' foreign- and local-currency long-term deposit ratings and baseline credit assessment at Ba3/b2. The outlook on the deposit ratings was negative. The bank's long- and short-term national scale rating was also affirmed at A2.tr/TR-1.

Additionally, Sekerbank TAS' B2 long-term foreign- and local-currency deposit ratings as well as "b2" baseline credit assessment were affirmed. The outlook on the long-term ratings was changed to stable from negative.

Türk Ekonomi Bankasi AS' long-term local-currency deposit rating and long-term foreign-currency deposit rating were downgraded to Ba2/Ba3 from Ba1/Ba2 and the outlook was changed to stable from negative. The bank's baseline credit assessment was affirmed at "ba3".

Also downgraded were QNB Finansbank AS' long-term local- and foreign-currency deposit ratings to Ba2/Ba3 from Ba1/ Ba2, with the outlooks changed to stable from negative. The baseline and adjusted baseline credit assessments were affirmed at "ba3" and "ba1", respectively.

Moody's also downgraded Alternatifbank AS' and ING Groep NV unit ING Bank AS' long-term local- and foreign-currency deposit ratings to Ba2/Ba3 from Ba1/Ba2, and changed the outlooks to stable from negative. The banks' baseline and adjusted baseline credit assessments were affirmed at "b1" and "ba1", respectively.

Moreover, Bank Audi SAL unit Odea Bank AS' Ba3 long-term foreign- and local-currency deposit ratings and "ba3" baseline credit assessment were affirmed, with the outlook on the long-term ratings changed to stable from negative. Odea Bank's long-term national scale rating was upgraded to A1.tr from A2.tr.