Fitch downgrades credit rating of 18 Turkish banks

Fitch downgrades credit rating of 18 Turkish banks
Ratings reduce will increase cost of foreign borrowing

Baku. 3 February. REPORT.AZ/ Fitch Ratings has downgraded the Long-Term Foreign Currency Issuer Default Ratings (FC IDRs) of 18 Turkish banks.

Report informs citing Fitch agency, cause of the decline is a decrease in support of the Turkish government to banks.

According to information, the downgrades of the FC IDRs of T.C. Ziraat Bankasi A.S. (Ziraat), Turkiye Halk Bankasi A.S. (Halk), Turkiye Vakiflar Bankasi T.A.O. (Vakif), Turkiye Sinai Kalkinma Bankasi A.S.(TSKB), Turkiye Kalkinma Bankasi A.S. (TKB) and Turkiye Ihracat Kredi Bankasi AS (Turk Eximbank) to 'BB+' from 'BBB-', follow the downgrade of Turkey's FC IDR.The SRFs of Akbank T.A.S. (Akbank) and Turkiye Is Bankasi A.S. (Isbank) have been revised downwards to 'B+' from 'BB-'.

The downgrade of the Long-Term FC IDRs of the foreign-owned banks - namely Turkiye Garanti Bankasi A.S., Yapi ve Kredi Bankasi A.S. (YKB), ING Bank A.S. (INGBT), Turk Ekonomi Bankasi A.S. (TEB), Finansbank A.S. (Finansbank), ICBC Turkey Bank A.S., Burgan Bank A.S., Alternatifbank A.S. (ABank), Kuveyt Turk Katilim Bankasi A.S (Kuveyt Turk) and Turkiye Finans Katilim Bankasi AS - reflects the downgrade of Turkey's Country Ceiling to 'BBB-'.

Notably, on January 28, Fitch downgraded Turkey's long-term foreign currency rating to 'BB+' from 'BBB-'. Analytical Group of Report News Agency states that ratings reduce will increase cost of foreign borrowing, which will led to increase in interest rates and slowdown in economic growth as a result. 

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