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Fitch downgrades Turkey's TEB Tüketici Finansman

Fitch Ratings on Oct. 5 downgraded TEB Tüketici Finansman AŞ' foreign- and local-currency long-term issuer default ratings to BB- from BB and to BB from BB+, respectively, with negative outlooks.

The agency also downgraded the Turkish lender's national rating to AA(tur) from AAA(tur), with a stable outlook.

At the same time, the BNP Paribas SA unit's B short-term foreign- and local-currency issuer default ratings and 3 support rating were affirmed.

Fitch said the ratings actions reflect its revised assessment of BNP Paribas' propensity to provide TEB Finansman support in case of need amid an increased risk of intervention in the banking sector by the Turkish government.

The actions also come after the recent downgrade of TEB Finansman's sister bank, Türk Ekonomi Bankası AŞ.