Fitch Ratings on July 20 downgraded 's viabilityrating to "a-" from "a" and removed it from Rating WatchNegative following the completion of its acquisition of Finansbank AS.
At the same time, the agency affirmed the bank's long- andshort-term issuer default rating at AA-/F1+. The outlook on the long-term ratingis stable. The bank's support rating and support rating floor were affirmed at1 and AA-, respectively.
The downgrade reflects the agency's view that theacquisition will increase Qatar National Bank's risk profile, weakencapitalization and introduce volatility to its earnings and profitability.
Fitch noted that even though the Turkish operatingenvironment is weaker and more volatile than that of Qatar, Qatar National Bankhas a good record of integrating and managing subsidiaries in weaker operatingenvironments.