Fitch downgrades Istanbul

Fitch Ratings said it downgraded the metropolitan municipality of Istanbul's long-term foreign-currency issuer default rating to BB+ from BBB- and short-term foreign-currency issuer default rating to B from F3.

The outlook is stable.

Fitch also said it affirmed Istanbul's long-term local-currency issuer default rating at BBB- and revised its outlook to stable from negative and affirmed its national long-term rating at AAA(tur) with stable outlook.

Under European Union credit rating agency regulation, the publication of international public finance reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for credit rating agencies to deviate to comply with their legal obligations, Fitch explained.

Fitch said it interprets this provision as allowing the publication of a rating review in situations in which there is a material change in the creditworthiness of the issuer that makes it inappropriate to wait until the next scheduled review date.

In this case, the deviation was caused by the rating action on Turkey's sovereign ratings, the agency said.

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