US-based global credit rating agency Moody’s has announced that the long-term debt and deposit ratings of 14 banks in Turkey were affirmed and their outlook was changed from stable to negative.
The decision came after Moody’s on March 17 changed the outlook on Turkey’s Ba1 government issuer rating from stable to negative.
According to Moody’s, the bank outlook change was prompted by the deterioration of the outlook in Turkey’s credit profile.
The affected institutions are Akbank TAS, Alternatifbank A.S., HSBC Bank A.S. (Turkey), ING Bank A.S. (Turkey), Finansbank AS, T.C. Ziraat Bankasi, Turkiye Halk Bankasi A.S., Turkiye Vakiflar Bankasi TAO, Turk Ekonomi Bankasi A.S., Turkiye Garanti Bankasi A.S., Yapi ve Kredi Bankasi A.S., Turkiye IS Bankasi A.S., Turkiye Sinai Kalkinma Bankasi A.S. and the GRI Export Credit Bank of Turkey A.S.
The global rating agency said the decision reflects Moody’s expectation that these banks’ ratings would come under pressure from a combination of the weakening capacity of the Turkish government to provide support in case of need as implied by the negative outlook on the sovereign rating; and the increasingly adverse macroeconomic environment in Turkey.