Moody's rates Oyak Bank

Moody's Investors Service said it assigned Baa3 long-term and prime-3 short-term local currency deposit ratings to Oyak Bank. Both ratings carry stable outlooks and pertain only to deposits denominated in Turkish Lira.

The bank's D+ financial strength rating and its B2 long-term and not-prime short-term foreign currency deposit ratings are unaffected by the action, the agency said.

In assigning the local currency deposit rating, Moody's said it is placing sole reliance on the intrinsic financial strength of the bank.

According to Moody's, Oyak Bank's D+ rating is based on its solid credit fundamentals relative to most banks in Turkey, exceptionally good asset quality for a bank operating in the Turkish economic environment, related-party lending that remains relatively minor, a value-adding deposit franchise and healthy levels of shareholders' equity.

At the same time, Moody's noted that the bank's financial strength rating reflects the relatively weak and still potentially volatile operating environment, which, despite showing signs of improvement, limits overall franchise potential for all banks in Turkey.

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