Fitch decision regarding Turkish banks

In a statement released by Fitch, it was announced that the long-term foreign currency issuer default ratings of Ziraat Bank, VakıfBank, and the Industrial Development Bank of Turkey (TSKB) have been upgraded from "B+" to "BB-".

The statement noted that the viability ratings of these banks were also raised from "b+" to "bb-", while their long-term local currency issuer default ratings were affirmed at "BB-" and their national long-term ratings were affirmed at "AA(tur)".

The statement indicated that the outlook for these banks has been set to "stable".

It was further reported that the long-term issuer default rating of Arab Turkish Bank was upgraded from "B" to "B+", its viability rating from "b" to "b+", and its national long-term rating from "A-(tur)" to "A(tur)", with the outlook also set to "stable".

The statement conveyed that the rating upgrades reflect Fitch's improved assessment of the operating environment in Turkey, and also take into account the stable business and financial profiles maintained by the banks in the context of improving operating conditions.

The statement mentioned that the government support ratings for Ziraat Bank, VakıfBank, and TSKB were also raised from "b+" to "bb-", reflecting the assessment that the ability of Turkish authorities to support the banking sector in foreign currency has increased following the improvement in foreign exchange reserves.

On the other hand, in another statement from Fitch, it was reported that the long-term foreign currency issuer default ratings of Halkbank, Emlak Katılım Bankası, and Vakıf Katılım Bankası were upgraded from "B+" to "BB-".

The statement, which noted that the rating outlooks were set to "stable", also reported that the government support ratings for these banks were raised from "b+" to "bb-".

The statement also recorded that the government support ratings for Türkiye İş Bankası, Akbank, and Yapı Kredi were upgraded from "b-" to "b".