Fitch Ratings on March 5 downgraded Istanbul-based Turkland Bank A?'s long-term foreign- and local-currency issuer default ratings to B+ from BB-, with a stable outlook, following the Feb. 28 downgrade of its Jordanian co-owner, Arab Bank Plc.
The rating agency affirmed Turkland Bank's short-term foreign- and local-currency issuer default ratings at B. The bank's support rating was downgraded to 4 from 3, and its national long-term rating was downgraded to A(tur) from A+(tur), with a stable outlook on the latter.
Its "b" viability rating remained unaffected.
The downgrade reflects Arab Bank's reduced ability to support Turkland Bank. Fitch said Turkland Bank's issuer default, national and support ratings are driven by institutional support from Arab Bank Group, which owns 50% of the Turkish bank. The other 50% is owned by Lebanon-based BankMed SAL.
