Moody's rates Akbank notes Ba1

Moody's Investors Service said it assigned a foreign-currency senior unsecured debt rating of Ba1 to the eurobond issuance with $1 billion principal amount with five-year maturity by Akbank TAS. Akbank AS has a global local deposit rating of Baa1 and foreign-currency deposit ratings of Ba3.

The outlook is stable.

This is Akbank's first debt issuance and it is being offered under 144A . The notes are unconditional, unsubordinated and unsecured obligations and will rank pari passu with all Akbank's other senior unsecured obligations. The rating is in line with Akbank's senior unsecured foreign-currency debt rating, Moody's said.

Even though Akbank's global local-currency deposit rating is higher than the foreign-currency bond ceiling for Turkey, Akbank's foreign-currency senior unsecured debt rating is constrained by and thus equal to this ceiling, Moody's said.

On the other hand, the lower foreign-currency deposit rating reflects the risk that a freeze on foreign-currency bank deposits is more likely to be imposed in the event of a government bond defaults than a generalized moratorium, the agency said.

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