Ratings of Turkish Banks Lowered Following Sovereign Action

23 June 2023

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has updated the ratings of 12 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.

The LT FCRs of the 12 banks – which were previously at the sovereign level – have been lowered by one notch and the associated Outlooks revised to Stable (from Negative), in line with the sovereign rating adjustment. The Short-Term (ST) FCRs of all 12 banks have been affirmed at ‘B’.

The Bank Standalone Ratings (BSRs) of three of the 12 banks (Garanti, Is Bankasi, and Akbank) have been lowered to ‘b’ from ‘b+’, with Stable Outlooks. The LT FCRs and BSRs of the three banks remain constrained by the sovereign rating as none of the banks fulfil our criteria for being rated above the sovereign. The BSR of state-owned Turk Eximbank has also been…