Moody's upgrades 16 Turkish banks

Moody's Investors Service said it upgraded the long-term foreign currency deposit ratings of 16 Turkish banks to B1 from B2. The outlook is stable.

Banks affected by the rating action include Akbank TAS, Anadolubank AS, Denizbank AS, Finansbank AS, Fortis Bank AS, HSBC Bank AS (Turkey), Kocbank AS, Oyak Bank AS, Tekfenbank AS, Turk Ekonomi Bankasi AS, Turkiye Garanti Bankasi AS, Turkiye Is Bankasi AS, Turkiye Sinai Kalkinma Bankasi AS, Turkiye Vakiflar Bankasi TAO, Yapi Ve Kredi Bankasi AS and T.C. Ziraat Bankasi.

This action mirrors the Dec. 14 upgrade of Turkey's ceiling for long-term foreign currency deposit ratings to B1. Moody's also upgraded the local currency deposit ratings of Akbank, HSBC, Turkiye Garanti, Turkiye Is, Turkiye Vakiflar and Yapi Ve Kredi to reflect the lower probability of a payments moratorium in Turkey, in line with the recently assigned A3 local currency deposit ceiling.

The decision to upgrade the long-term foreign currency deposit ratings of the 16 Turkish banks is based on the fact that these ratings were capped by the sovereign ceiling at the B2 level, the agency said. This means that on a stand-alone basis, all rated Turkish banks would have attained at least a B1 foreign currency deposit rating in an unconstrained environment.

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