S&P cuts view to stable on seven Turkish banks

Standard & Poor's said it revised its outlook to stable from positive on seven Turkish banks, including T.C. Ziraat Bankasi AS, Türkiye Is Bankasi AS, Türkiye Garanti Bankasi AS, Garanti Finansal Kiralama AS, Koçbank, Türkiye Vakiflar Bankasi TAO and OYAK Bank AS.

At the same time, S&P said it affirmed its BB-/B long- and short-term counterparty credit ratings on Ziraat, Isbank, Garanti Leasing, Koçbank, VakifBank and OYAK Bank.

The BB- long-term counterparty credit rating on Garanti was also affirmed, the agency added, noting that the outlook revision follows that on the sovereign, the Republic of Turkey (foreign currency, BB-/stable/B, local currency, BB/stable/B), reflecting deteriorating prospects for improved economic fundamentals.

"Despite significant strengthening of the Turkish banking system following major restructuring, the increased presence of foreign banks and four successive years of growth and modernization, the deteriorating economic prospects will somewhat constrain this positive momentum," said S&P credit analyst Magar Kouyoumdjian.

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