Moody’s cuts Turkish banks’ ratings

Moody's Investors Service said it downgraded to B2 from B1 the long-term foreign currency deposit ratings of Akbank TAS, Alternatifbank AS, ING Bank AS (Turkey), QNB Finansbank AS, TC Ziraat Bankasi, Turk Ekonomi Bankasi AS, Turkiye Garanti Bankasi AS, Turkiye Vakiflar Bankasi TAO and Yapi ve Kredi Bankasi AS.

The downgrades are driven by the lowering of Turkey's foreign currency deposit ceiling to B2 from B1, the agency said.

The agency said the downgrades do not reflect bank-specific credit considerations.

The lowering of the ceiling reflects a view that the risk of the government intervening to prevent the withdrawal of foreign currency-denominated deposits in order to conserve Turkey's foreign currency reserves has risen, Moody’s said.

As a consequence, the long-term foreign currency deposit ratings of 9 banks are now constrained at B2, the agency explained.

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