Fitch Ratings has revised the outlooks from Stable to Negative on the Long-Term Foreign-Currency (LTFC) Issuer Default Ratings (IDRs) of Turkey’s state-owned lenders
It also downgraded Halkbank’s LTFC IDR to 'B' from 'B+', and kept the rating on rating watch negative (RWN).
The ratings of three other banks
The downgrading of Halkbank and the negative outlooks placed on Ziraat and Vakifbank reflected the sovereign's weaker foreign-currency (FC) reserves position, and consequent reduced ability to support the banks with FC in the event of need, the rating agency said. Turkey’s central bank is widely thought to have burnt through a substantial amount of its hard currency reserves in its battle to defend the Turkish lira this year from a renewed bout of severe depreciation.
“The negative outlook on Garanti reflects Fitch's view that the weakening of
The affirmation of the viability ratings of
The rating agency warned that risks to all seven banks' standalone credit profiles have increased as a result of the economic downturn and financial market volatility, which heighten pressure on lenders' asset quality, capitalisation, performance, funding and liquidity.
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