Fitch ups Garanti Bank viability

Fitch Ratings said it affirmed Garanti Bank SA's and ProCredit Bank SA's long-term issuer default ratings at BBB- with stable outlooks.

The agency also upgraded Garanti Bank’s viability rating to bb- and affirmed ProCredit’s viability rating at b+.

Fitch said the upgrade of Garanti Bank’s viability rating reflects an overall improvement in the bank's risk profile, driven by a reduction in the stock of impaired loans on balance sheet, higher regulatory capitalization and improvements in risk controls undertaken as part of the alignment with the ultimate parent's processes and risk appetite framework.

The bank's modest franchise in the local market is a rating weakness.

Earnings improved in 2017, but the bank has yet to build a track record of profitability through credit and interest rate cycles, the agency explained.

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