Moody’s Investors Service has taken rating actions on a total of 19 banks and finance companies in Turkey, days before the Turkish polls.
According to moody’s.com and the relevant press release, the financial services company has downgraded and placed on review for further downgrade the ratings of 17 banks and placed on review for downgrade the ratings of two finance companies. The downgrades reflect Moody’s view that the operating environment in Turkey has deteriorated, with negative implications for the institutions’ funding profiles.
The reviews will focus on the likelihood of (1) further deterioration of the operating environment and its impact on the banks’ standalone credit strength, (2) changes in affiliate support for foreign-owned banks, and (3) weakening of government capacity to support, following Moody’s review for downgrade of Turkey’s Ba2 government bond rating, on 1 June 2018.
Among the affected ratings are: ING Bank A.S. (Turkey), QNB Finansbank AS and Turkiye Halk Bankasi A.S. For more on the ratings please go to moody’s.com.
According to Moody’s the operating environment in Turkey, particularly in terms of market funding, has deteriorated since its last rating action on Turkish banks in March 2018 (see https://www.moodys.com/research/–PR_380376). … / IBNA