Page 71 - TURKRptDec19

KRDMB
85
31
0.13
0.11
27-Nov
5.90
KRDMD
205
0.13
0.11
27-Nov
5.62
BIMAS
1,250
243
0.40
0.34
11-Dec
1.70
8.4 ​International ratings
8.4.1​ ​International ratings - specific details of rating actions corp/regional etc
TURKEY - Rating agency
Jun-18
Jul-18
Aug-18
Jun-19
Jul-19
Nov-19
Dec-19
Bond rating: Moody’s
Ba2 (UR)
Ba2 (UR)
Ba3 (N)
B1 (N)
B1 (N)
B1 (N)
B1 (N)
Bond rating: Fitch
BBB- (S)
BB (N)
BB (N)
BB (N)
BB- (N)
BB- (S)
BB- (S)
Bond rating: S&P
BB- (S)
BB- (S)
B+ (S)
B+ (S)
B+ (S)
B+ (S)
B+ (S)
Fitch Ratings places Turkey at BB-/Stable, three notches below investment grade. Moody’s Rating Services rates Turkey at B1/Negative, four notches below investment grade, while Standard & Poor’s rates Turkey at B+/Stable, four notches below investment grade.
Fitch Ratings on November 12 revised its outlooks on 20 Turkish banks to Stable from Negative​, while affirming their Issuer Default Ratings (IDRs). The move comes in the wake of the rating agency upgrading Turkey’s outlook on November 1.
Fitch also revised the outlooks on the Long-Term Local-Currency (LTLC) IDRs of private lenders Akbank and Is Bankasi to Stable from Negative.
Fitch maintained its Rating Watch Negative (RWN) on state-owned Halk Bankasi​'s ratings following the announcement on 15 October by the US Department of Justice that the bank had been charged with fraud, money laundering and Iran sanctions offences.
Turkey’s banks and financial institutions have acquired 85.05% of JCR Eurasia, the local unit of Japan Credit Rating Agency​, Turkey’s banking association said on November 30.
Ankara has long wanted to rely less on the big three global agencies, which have been targeted with angry rhetoric by President Recep Tayyip Erdogan in the wake of rating downgrades.
Borsa Istanbul is to hold 18.5% of the company, while Japan Credit Rating Agency will keep 14.95%. Turkish private and state lenders, including Ziraat Bank, GarantiBBVA and Yapi Kredi will also hold stakes.
JCR Eurasia will not rate banks or sovereign debt, a person familiar with the matter was cited as saying by Reuters. Rather it will focus on companies.
The banking association said the purchase would help make efficient use of resources through credit ratings.
The Financial Institutions Association, Turkey’s Capital Markets Association and the Insurance and Reinsurance Union will each hold 6% of the company.
Last year, as the lira fell sharply amid Turkey’s balance of payments crisis, Ankara accused Western credit rating agencies of deliberately attempting to undermine the Turkish banking sector. The agencies had outlined their concerns about the impact of the currency crunch on Turkish banks.
71​ TURKEY Country Report​ December 2019 ​ ​www.intellinews.com