Moody's on June 13 assigned long- and short-term counterparty risk ratings to 17 Turkish banks, and placed the long-term ratings on review for downgrade.
The agency assigned long- and short-term local- and foreign-currency counterparty risk rating of Ba2/NP to Akbank TAS, DenizBank AS, Türkiye Ihracat Kredi Bankasi AS (Export Credit Bank of Turkey), TC Ziraat Bankasi AS, Türkiye Is Bankasi AS, Türkiye Sinai Kalkinma Bankasi AS. The ratings were Ba1/NP for Qatar National Bank (QPSC) unit QNB Finansbank AS and Türk Ekonomi Bankasi AS and Ba3/NP to Türkiye Halk Bankasi AS and Türkiye Vakiflar Bankasi TAO.
Moody's also assigned Ba1/NP long- and short-term local- and foreign-currency counterparty risk rating and national scale rating long- and short-term counterparty risk ratings of Aaa.tr/TR-1 to Alternatifbank AS and ING Groep NV unit ING Bank AS. The ratings are Ba3/NP and A2.tr/TR-1 for HSBC Holdings PLC unit HSBC Bank AS; Ba3/NP and A1.tr/TR-1 for Bank Audi SAL unit Odea Bank AS; B2/NP and Baa3.tr/TR-3 for Sekerbank TAS; Ba2/NP and Aa1.tr/TR-1 for Banco Bilbao Vizcaya Argentaria SA unit Türkiye Garanti Bankasi AS; and of Ba2/NP and Aa2.tr/TR-1 for Koç Finansal Hizmetler AS unit Yapi ve Kredi Bankasi AS.
The national scale rating long-short-term counterparty risk ratings of Alternatifbank, HSBC Bank, ING Bank, Odea Bank, Sekerbank, Garanti Bankasi and Yapi Kredi were also placed on review for downgrade, as well as the national scale rating short-term ratings of HSBC Bank, Odea Bank and Sekerbank.
The ratings are the agency's opinions of the banks' abilities to honor the uncollateralized portion of nondebt counterparty financial liabilities and the expected financial losses if the liabilities are not honored.
Moody's said the placement of the long-term ratings on review for downgrade reflects a similar review on the banks' stand-alone baseline credit assessments.