Fitch: Turkland Bank on watch

Fitch Ratings said it placed on Rating Watch negative Turkland Bank AS's BBB- long-term foreign- and local-currency issuer default ratings, F3 short-term foreign- and local-currency issuer default ratings and AAA(tur) national long-term rating.

The bank's viability rating was affirmed at B+.

The negative watch follows the placement of Arab Bank plc on negative watch, Fitch said.

Turkland's ratings are driven by potential support from Arab Bank, the agency said. This reflects Turkland's ownership structure, in which Arab Bank and its sister bank, Arab Bank (Switzerland) Ltd., control only a combined 50% of the bank's capital with Lebanese Bank Med SAL holding the other 50%, the agency said.

Turkland is small in relation to Arab Bank, Fitch said, and has a limited impact on the latter's balance sheet and income statement.

Positively, though, all shareholders have continued to provide fresh capital to support Turkland's growth, the agency said.

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