S&P downgrades Turk Eximbank

S&P said it lowered the foreign-currency ratings on Export Credit Bank of Turkey (Turk Eximbank) to BB from BB+.

The outlook is negative.

The downgrades follow the recent downgrade of the Republic of Turkey, S&P explained.

The agency said it equalizes the ratings on Turk Eximbank with those on its sole owner, Turkey, reflecting the almost certain likelihood that the Turkish government would provide timely and sufficient extraordinary support the bank if needed.

The bank plays a critical role in supporting Turkish exports, which is a key focus of national economic development, S&P said.

The bank also has an integral link with the Turkish government through the sovereign's sole ownership, government control of the board of directors and the sovereign's guarantee on the ultimate recovery of losses on loans extended by the bank, the agency said.

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