International credit rating agency Moody’s downgraded the ratings on the eight largest non-financial corporates in Turkey after the downgrade of Turkey’s government bond ratings last week.
According to a statement by Moody’s, the ratings of Turkey’s largest companies – Koç Holding, OYAK, Turkcell, Tüpraş, Anadolu Efes, Erdemir, Coca-Cola Turkey and Şişe Cam — were downgraded to B2 from B1.
Moody’s Investors Service on Sept. 11 had downgraded Turkey’s sovereign credit rating to B2 from B1. Moody’s kept a negative outlook on the rating, noting that fiscal metrics could deteriorate faster than currently expected.
In their statement Moody’s analysts Sarah Carlson and Yves Lemay said: “Turkey’s external vulnerabilities are increasingly likely to crystallize in a balance of payments crisis. As the risks to Turkey’s credit profile increase, the country’s institutions appear to be unwilling or unable to effectively address these challenges.”
Moody’s also downgraded 13 Turkish banks on Sept. 15: Akbank T.A.S. (Akbank), Alternatifbank A.S. (Alternatifbank), Denizbank A.S., HSBC Bank A.S. (Turkey), QNB Finansbank A.S. (QNB Finansbank), T.C. Ziraat Bankasi A.S. (Ziraat), Turk Ekonomi Bankasi A.S. (TEB), Turkiye Garanti Bankasi A.S. (Garanti BBVA), Turkiye Halk Bankasi A.S. (Halk Bank), Turkiye Is Bankasi A.S. (Isbank), Turkiye Vakiflar Bankasi T.A.O. (Vakifbank), Yapi ve Kredi Bankasi A.S. (Yapi Kredi) and Export Credit Bank of Turkey A.S. (Turk Eximbank). Moody’s downgraded the foreign currency long-term deposit ratings of 12 banks in Turkey; the long-term counterparty risk ratings and the long-term counterparty risk assessments of six banks; and the long-term senior unsecured rating of one bank by one notch and the long-term foreign currency CRR of three banks by two notches.
S&P Global Ratings’ credit rating for Turkey is B+, and Fitch Ratings’ is BB-.