Garanti Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Garanti BBVA (Garanti or the Bank) at ‘BB-’ and ‘B’, respectively. At the same time, CI Ratings has affirmed Garanti’s Bank Standalone Rating (BSR) of ‘bb-’, Core Financial Strength (CFS) rating of ‘bb+’ and Extraordinary Support Level (ESL) of Moderate. The Outlook on the LT FCR and BSR remains Stable.

The affirmation of the ratings is based on the Bank’s resilient financial performance despite some weakening of profitability metrics. Although the ESL is Moderate, the LT FCR does not incorporate any uplift for extraordinary support from foreign parent Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), as the BSR is at the sovereign level and as the Bank does not fulfil our criteria for being rated above Turkiye given its domestic focus and high sovereign interference risk. The ESL is…