Printer Friendly

Fitch Ratings downgrades Arap Turk Bankasi A.S.'s IDRs.

London: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, downgraded Arap Turk Bankasi A.S.'s (ATB) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-' and the bank's Viability Rating (VR) to 'b+' from 'bb-' and removed them from Rating Watch Negative (RWN). The Outlook on the Long-Term IDRs is Stable.

This follows ongoing and increased market volatility in Turkey, including significant depreciation of the Turkish lira against the US dollar and euro. The rating action follows the downgrade of Turkish banks on 20 July 2018 subsequent to the Turkish sovereign rating downgrade to 'BB' from 'BB+' (see Fitch Downgrades 24 Turkish Banks; Removes from Rating Watch Negative on www.fitchratings.com). The downgrade of ATB's IDRs and VR primarily reflects the increased risks in the Turkish operating environment, where a material portion of the bank's business volume is concentrated, and therefore increased risks to the bank's asset quality, profitability, and capitalisation.

The removal of the bank's ratings from RWN and the Stable Outlook on the Long-Term IDRs reflect our view that risks to ATB's credit profile from the weakening Turkish operating environment are captured at the 'B+' level and further risks are mitigated by the bank's niche franchise in providing short-term, self-liquidating trade finance in the Middle East and North Africa (MENA) region.

COPYRIGHT 2018 Plus Media Solutions
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Oct 28, 2018
Words:229
Previous Article:Fitch Ratings affirms Union de Banques Arabes et Francaises' IDR at 'A-'.
Next Article:Fitch Ratings upgrades ratings of Greenko Dutch B.V's notes.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters