Ratings of Turkish Banks Lowered Following Sovereign Action
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TR03623 PBK00-01 23 June 2023
Ratings of Turkish Banks Lowered Following Sovereign Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has updated the ratings of [number to be inserted later] Turkiye-based banks in light of the recent change in the sovereign’s Long-Term Foreign Currency Rating (LT FCR) to ‘B’, from ‘B+’, and the adjustment of the Outlook to Stable, from Negative.
[Paragraphs identifying other banks redacted until publication]
The rating actions have been prompted by the downgrade of Turkiye’s sovereign ratings to ‘B’/‘B’/Stable (from ‘B+’/‘B’/Negative) on 2 June 2023 (see “Turkiye – Ratings Lowered; Outlook Revised to Stable” at www.ciratings.com).
The change in the LT FCRs reflects CI’s view that downside risks for the banking sector have increased further and pressure on banks’ credit profiles is building due to ongoing risks to macroeconomic…