Moody's downgrades Turkish banks

Moody's Investors Service said it took rating actions on 11 Turkish banks, concluding the reviews for downgrade that began in March.

Among other rating actions, the agency said it downgraded the following debt ratings:

• Akbank TAS' local- and foreign-currency senior debt ratings to Baa3 from Baa2;

• Asya Katilim Bankasi AS' foreign-currency subordinated debt (issued through Asya Sukuk Co. Ltd.) to B1 from Ba3;

• Turkiye Garanti Bankasi AS' local- and foreign-currency senior debt ratings to Baa3 from Baa2;

• Turkiye Halk Bankasi AS' foreign-currency senior debt rating to Baa3 from Baa2;

• Turkiye Is Bankasi AS' foreign-currency senior debt rating to Baa3 from Baa2 and foreign-currency subordinated debt rating to Ba2 from Ba1; and

• Turkiye Vakiflar Bankasi TAO's foreign-currency senior debt rating to Baa3 from Baa2. Its foreign-currency subordinated debt rating was confirmed at Ba2;

In addition, Yapi Ve Kredi Bankasi AS' Baa3 long-term foreign-currency senior debt rating and Ba2 foreign-currency subordinated debt rating were confirmed.

The agency said the two key drivers of the rating actions are pressures on the standalone credit strength of some of the institutions and Moody's reassessment of the level of systemic support that it believes should be incorporated into some of the banks' senior ratings.

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