Moody's puts GarantiBank on downgrade review

Moody's Investors Service said it placed the Baa1 long-term deposit rating and prime-2 short-term deposit ratings of the GarantiBank International NV on review for downgrade.

Moody's also said it placed the bank's baseline credit assessment of Baa3 and adjusted baseline credit assessment of Baa2 on review for downgrade.

The long-term and short-term counterparty risk assessments of A2(cr) and prime-1(cr) have been placed on review for downgrade.

These actions follow the review for downgrade of Turkey's Ba2 government bond rating, which was announced June 1, which was triggered by mounting uncertainty regarding the future direction of macroeconomic policy, the agency said.

The downgrade review also considers the country's already vulnerable external position, which will likely raise the risk of severe pressures on Turkey's balance of payments to a level that is no longer consistent with the current rating, Moody's said.

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