Fitch lowers views on Turkey banks to negative

Fitch Ratings said it revised the outlooks to negative from stable on several Turkish banks and affirmed their issuer default ratings.

The ratings on those banks' financial subsidiaries, which are driven by institutional support, also were affirmed with outlooks revised to negative.

The outlook changes follow a similar revision of the outlook on Turkey's sovereign issuer default ratings to negative from stable, Fitch said.

The banks with revised outlooks include T.C. Ziraat Bankasi AS, Turkiye Halk Bankasi AS, Turkiye Vakiflar Bankasi TAO, Istanbul Takas ve Saklama Bankasi AS, Turkiye Sinai Kalkinma Bankasi AS, Turkiye Kalkinma Bankasi AS and Turkiye Ihracat Kredi Bankasi AS, Turkiye Garanti Bankasi AS, ING Bank AS, Turk Ekonomi Bankasi AS, Finansbank AS, ICBC Turkey Bank AS, Burgan Bank AS, Alternatifbank AS, Kuveyt Turk Katilim Bankasi AS and Turkiye Finans Katilim Bankasi AS.

The outlook revisions reflect the increased likelihood of a deterioration in the government's ability to provide support given the negative outlook on the sovereign rating, Fitch said.

The negative outlooks also consider the potential for those banks whose viability ratings are at the same level as the sovereign ratings to be downgraded due to the effects of a worsening operating environment, the agency said.

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