Moody’s reviews Denizbank

Moody's Investors Service said it placed the Ba2 local and foreign currency long-term deposit ratings and ba2 adjusted baseline credit assessment of Denizbank AS on review for downgrade.

At the same time, the agency placed the counterparty risk (CR) assessment of Ba1(cr) on review for downgrade. The bank's short term NP deposit and NP(cr) CR assessment ratings and its standalone ba3 BCA were not affected.

Moody's said the review for downgrade results from the review for downgrade on the ratings and standalone BCA of Sberbank (foreign currency deposits: Ba2 under review/debt: Ba1, under review; BCA: ba2 under review), Denizbank's Russia-based parent, which owns 99.9% of the Turkish subsidiary.

Denizbank's Ba2 long-term deposit rating and ba2 adjusted BCA incorporate one notch of uplift from the bank's ba3 standalone BCA due to Moody's assumption of a high probability of affiliate support from its parent and majority shareholder Sberbank.

Therefore, the review will focus on the likelihood of support assumptions and the parent's capacity to provide such support in case of need, given the review of Sberbank's standalone rating, the agency said.

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