Moody’s might lift Dogus

Moody's Investors Service said it placed the Ba2 corporate family rating and Ba2-PD probability of default rating of Dogus Holding AS on review for upgrade.

The action was triggered by Banco Bilbao Vizcaya Argentaria, SA’s (BBVA, Baa2 positive) Nov. 19 announcement that it entered into an agreement with Dogus to acquire a 14.89% stake in Turkiye Garanti Bankasi AS (Garanti Bank, Baa3 negative) for a total consideration of about 5.5 billion Turkish Lira ($2.5 billion).

Dogus' stake in Garanti Bank will subsequently fall to 10% from 24.89%. The completion of the transaction is subject to regulatory approval.

"We are putting Dogus' ratings on review for upgrade because the share sale in Garanti Bank enhances the company's liquidity position and depending on how the proceeds are deployed, could lead to a decrease in its gross debt and net funding costs," Moody's analyst and lead analyst for Dogus, Rehan Akbar, said in a news release.

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