Ratings of Turkish Banks Lowered Following Sovereign Action

TR09421PBK00-01 15 December 202 1

Ratings of Turkish Banks Lowered Following Sovereign Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has updated the ratings of 14 Turk ey-based banks in light of the recent change in the outlook on the sovereign’s ‘B+’ Long-Term Foreign Currency Rating (LT FCR) to Negative (from Stable) , and the adjustment in the Operating Environment Risk Anchor (OPERA) for the banking sector to ‘b-’ from ‘b’.

T he LT FCRs and Bank Standalone Ratings (BSRs) of eight of the 14 banks have been affirmed, but the Outlook s for the ratings revised to Negative (from Stable) , mirroring the s overeign action and indicating a likely downgrade in the ratings by one notch in the next 12 months .

For three of the banks, the LT FCR s and BSR s have been lowered by one notch , driven by the change in OPERA. For one of th e se banks, the Outlook for the…