Fitch affirms Turkish banks

Fitch Ratings said it affirmed the BBB- long-term foreign-currency issuer default ratings of Turkey's four largest privately owned banks: Turkiye Is Bankasi AS (Isbank), Turkiye Garanti Bankasi AS, Akbank TAS and Yapi ve Kredi Bankasi AS.

The agency also affirmed their short-term local- and foreign-currency issuer default ratings at F3, national long-term ratings at AAA(tur), viability ratings at bbb- and senior debt at BBB-.

The BBB- long-term local-currency issuer default ratings, 3 support ratings and BB support rating floors of Isbank, Garanti, Akbank were affirmed, and so were Yapi Kredi's BBB long-term local-currency issuer default rating and 2 support rating.

Fitch said the banks' ratings reflect their broad and stable franchises; sound financial metrics, in terms of capitalization, asset quality, performance and liquidity; generally strong management and risk management, in particular for emerging market banks; and the relatively low level of systemic risks and imbalances in the Turkish banking sector as a whole.

At the same time, the agency said its analysis of the banks also takes into account the still relatively high sovereign risks (Turkey is rated BB+/stable) and considerable volatility in the country's macroeconomic indicators; the sharp ongoing slowdown in domestic economic growth following a rapid credit buildup at the banks in 2011; and the high proportion of foreign-currency loans in corporate portfolios at all four banks.

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