S&P cuts seven Turkish banks to negative

Standard & Poor's said it revised its outlooks on seven Turkish financial institutions and one operating holding company.

The agency said that the outlooks on the following entities were revised to negative from stable: T.C. Ziraat Bankasi A.S., Türkiye Is Bankasi A.S., Türkiye Garanti Bankasi A.S., Garanti Finansal Kiralama A.S., Yapi ve Kredi Bankasi A.S., Türkiye Vakiflar Bankasi T.A.O., HSBC Bank A.S. and Dogus Holding A.S.

At the same time, the BB-/B long- and short-term counterparty credit ratings on Ziraat, Isbank, Garanti Leasing, YapiKredi, VakifBank, and Dogus Holding were affirmed, S&P noted.

Furthermore, the BB- long-term counterparty credit rating on Garanti and the BB/B long- and short-term counterparty credit ratings on HSBC Bank A.S. were affirmed, the agency added.

Additionally, the Turkish long-term national-scale ratings on Isbank, VakifBank, YapiKredi, and Ziraat were lowered to trA from trA+, and the Turkish long-term national-scale ratings on HSBC Bank A.S. were lowered to trAA from trAA+, the agency said.

According to S&P, the outlook revision follows that on the sovereign, Republic of Turkey (foreign currency, BB-/negative/B; local currency, BB/negative/B), following a shift in the balance of risks to the downside as external financing conditions remain difficult.

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