Fitch puts Denizbank on watch

Fitch Ratings said it placed Denizbank AS' ratings on Rating Watch negative, including the BBB- long-term foreign-currency issuer default rating, BBB long-term local-currency issuer default rating, F3 short-term foreign- and local-currency issuer default ratings, AAA(tur) national long-term rating, C individual rating and 2 support rating.

Denizbank is a 100% owned subsidiary of Dexia. The agency said the rating action reflects Dexia's announcement that the European Union approved its restructuring plan, which envisages continued deleveraging at Dexia, the divesture of various Dexia subsidiaries and a paring down of various businesses.

While Dexia's management has indicated that the Turkish operations will continue to represent one of the key business lines and that Denizbank is not among the entities that are planned to be divested, Fitch believes there might be implications for Denizbank arising as a consequence of the plan.

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