Turkiye Vakiflar Bankasi – 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 Turkiye Vakiflar Bankasi T.A.S. (Vakif or the Bank) at ‘BB-’ and ‘B’, respectively. At the same time, CI Ratings has affirmed Vakif’s Bank Standalone Rating (BSR) of ‘b+’, 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 BSR (and CFS) reflects the resilience of the Bank’s financial performance – despite the challenging operating environment – and is supported by Vakif’s well-established franchise and market position as the second-largest (previously third) bank by assets, as well as reasonably good financial metrics, including loan asset quality and high loan-loss reserve coverage, and sound liquidity and funding profile. The ratings are also supported…