trending Market Intelligence /marketintelligence/en/news-insights/trending/use9dwafb6vdz9yobnwgka2 content esgSubNav
In This List

Fitch places 25 Turkish lenders on Rating Watch Negative

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Fitch places 25 Turkish lenders on Rating Watch Negative

Fitch Ratings on June 1 placed 25 Turkish lenders' long-term foreign-currency issuer default ratings and viability ratings on Rating Watch Negative.

The BB+ long-term foreign currency issuer default ratings of Akbank TAS, AK Yatirim Menkul Degerler AS, Ak Finansal Kiralama AS, Türkiye Is Bankasi AS, Is Faktoring AS, Is Finansal Kiralama AS, T.C. Ziraat Bankasi AS, Ziraat Katilim Bankasi AS, Türkiye Halk Bankasi AS, Türkiye Vakiflar Bankasi TAO, Vakif Katilim Bankasi AS, Türkiye Sinai Kalkinma Bankasi AS and Türkiye Ihracat Kredi Bankasi AS were placed on Rating Watch Negative.

Fitch also placed on Rating Watch Negative the BBB- long-term foreign-currency issuer default ratings of Banco Bilbao Vizcaya Argentaria SA units Türkiye Garanti Bankasi AS, Garanti Faktoring AS and Garanti Finansal Kiralama AS, Yapi ve Kredi Bankasi AS, Yapi Kredi Finansal Kiralama AO, Yapi Kredi Faktoring AS, Yapi Kredi Yatirim Menkul Degerler AS, BNP Paribas SA's Türk Ekonomi Bankasi AS, Qatar National Bank (QPSC) subsidiaries QNB Finansbank AS and QNB Finans Finansal Kiralama, ING Groep NV's ING Bank AS, Kuwait Finance House KSCP's Kuveyt Türk Katilim Bankasi AS, National Commercial Bank's Türkiye Finans Katilim Bankasi AS, Commercial Bank (PSQC) units Alternatifbank AS and Alternatif Finansal Kiralama AS, Burgan Bank KPSC's Burgan Bank AS, Industrial & Commercial Bank of China Ltd. unit ICBC Turkey Bank AS and Bankpozitif Kredi ve Kalkinma Bankasi AS.

The rating agency placed Sekerbank TAS' B+ long-term foreign-currency issuer default rating and the BB- long-term foreign-currency issuer default ratings of Anadolubank AS, Fibabanka AS, Bank Audi SAL's Odea Bank AS and Arap Türk Bankasi AS on Rating Watch Negative.

The BB+ foreign-currency issuer default rating of Akbank's German unit Akbank AG was also placed on Rating Watch Negative by the agency. The foreign-currency issuer default ratings of Türkiye Kalkinma Bankasi AS and Turkland Bank A? were affirmed at BB+ and B+, respectively, with stable outlooks.

The Rating Watch Negative on all the issuer default ratings of the state-owned commercial banks and two development banks takes into account the greater potential stress in Turkey's external finances that could obstruct authorities' ability to provide support in foreign-currency, Fitch said. The issuer default ratings of the foreign-owned Turkish banks are based on the agency's intention to reassess whether it remains appropriate to rate these entities above the country, "given potential intervention in the banking system, if the sovereign faces a marked deterioration in Turkey's external finances."

Meanwhile, the "bb+" viability ratings of Akbank, Isbank, Ziraat Bank, Halkbank, Vakifbank, Garanti, Yapi ve Kredi and Türk Ekonomi Bankasi were placed on Rating Watch Negative, along with the "bb-" viability ratings of Anadolubank, Fibabanka, Odea Bank, Arap Türk Bankasi, Katilim Bankasi and Finans Katilim Bankasi.

Fitch also placed on Rating Watch Negative the "bb" viability ratings of Sinai Kalkinma Bankasi, QNB Finansbank and ING Bank, the "b+" viability ratings of Vakif Katilim Bankasi, Sekerbank, Alternatifbank, Burgan Bank AS, ICBC Turkey Bank and Bankpozitif Kredi ve Kalkinma Bankasi and Turkland Bank's "b" viability rating.

The Rating Watch Negative on the viability ratings reflects risks to the banks' performance, asset quality, capitalization and in most cases, liquidity and funding profiles, following a recent period of increased market volatility.

Fitch noted it will resolve the Rating Watch Negatives based on an analysis of the impact on banks' credit profiles of the deterioration in the operating environment and the extent to which the environment deteriorates further or stabilizes in the near-term. The agency expects to resolve the Rating Watch Negatives in the next six months.