Positive Outlook Assigned to Ratings of Turkish Banks Following Similar Sovereign Action

21 June 2024

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on 11 Turkish banks’ Long-Term Foreign Currency Ratings (LT FCRs) to Positive from Stable. The Outlook on the Bank Standalone Ratings (BSRs) of four of these banks has also been revised to Positive from Stable, while the Outlook on the other seven banks’ BSRs is unchanged.

At the same time, CI Ratings has affirmed the Short-Term (ST) FCRs, Core Financial Strength (CFS) ratings, Bank Standalone Ratings (BSRs), and Extraordinary Support Levels (ESLs) of the 11 banks at their existing level.

The rating actions have been prompted by the recent change in the outlook for Turkiye’s ‘B’ long-term sovereign issuer credit ratings to Positive from Stable. The sovereign action was driven by the government’s adoption of a more consistent and effective macroeconomic policy mix, which has helped to improve investor confidence, as well as CI’s expectation that…