S&P revises outlooks for Garanti BBVA, Garanti Finansal

S&P said it revised its outlooks for Garanti BBVA and Garanti Finansal Kiralama AS to negative from stable.

The agency believes both companies, owned by Banco Bilbao Vizcaya Argentaria SA, are vulnerable to worsening operating conditions in Turkey.

BBVA didn’t provide any financial support to Garanti BBVA “despite a material worsening of the crisis in Turkey over the last year” S&P said in a press release.

S&P doesn’t see BBVA coming to Garanti’s help if conditions worsen. BBVA’s approach is to encourage financial independence among its subsidiaries and in the process limit the risk to other subsidiaries, S&P said.

That said, everything else in the companies’ credit profiles remain largely unchanged, the agency said.

S&P affirmed its ratings for the two companies.

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