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Turkey

Global Home > Turkey

Turkey Downgrade Drives Corporate Actions, Highlights FX Risks

The downgrade of Turkey to 'BB-' from 'BB' with a Negative Outlook reflects, among other factors, the dismissal of the central bank governor Murat Cetinkaya, which has heightened doubts over the authorities' tolerance for a period of sustained below-trend growth and disinflation. We now forecast a somewhat faster cut in the Turkish policy rate to 18% at end-2019 (compared to a previous forecast of 20%) and further currency depreciation.

Full Rating Report: Turkey

Turkey's rating and Negative Outlook reflect weak external finances, manifest in a large external financing requirement, low foreign reserves and high net external debt, high inflation, a track record of economic volatility, and political and geopolitical risks.

Special Report

Turkish Banks Avoid Liquidity Crunch; Refinancing Risks Persist

Turkey's banking system has avoided a foreign-currency (FC) liquidity crunch since the lira depreciation in August 2018, helped by FC deposit inflows, but refinancing risks remain high.

Webinar on Demand

A Webinar on Turkey and The Banking System from June 11th

Fitch Ratings hosted a webinar on the Turkish sovereign and banks covering trends in the external position, economic reform prospects post-elections, adequacy of banking sector capitalization, and banking sector FX liquidity and refinancing risks.

Key Speakers:
Ed Parker, Head of EMEA Sovereign Ratings (moderator)
Paul Gamble, Head of Emerging Europe, Sovereign Ratings
Lindsey Liddell, Senior Director,  Financial Institutions Ratings
 

Listen on Demand

Turkey - June 2019 Global Economic Outlook Forecast

This is the Turkey section of Fitch Ratings' June Global Economic Outlook. Fitch has kept the bulk of its headline forecasts for Turkey unchanged, as the economy continues to adjust to the fallout from the plunge in the currency and policy tightening last year. However, we have altered the quarterly growth path.

Turkish Banks Have Notable Cushion Against Weaker Asset Quality

The Turkish banking sector's profitability and capital buffers still provide a significant cushion against a potential marked deterioration in asset quality, driven by the weaker operating environment, Fitch Ratings says in a new report.

Fitch Affirms NBFI Subsidiaries of Large Turkish Banks; Outlook Negative

Fitch Ratings has affirmed the support-driven Long-Term Foreign-Currency Issuer Default Ratings (LTFC IDRs) of Garanti Finansal Kiralama A.S., Garanti Faktoring A.S., Yapi Kredi Finansal Kiralama A.O., Yapi Kredi Faktoring A.S. and Yapi Kredi Yatirim Menkul Degerler A.S. at 'BB-', and of Ak Finansal Kiralama A.S., Ak Yatirim Menkul Degerler A.S. and Is Finansal Kiralama A.S. at 'B+'. 

Turkish Islamic Banks Dashboard

The market share of Turkey’s five participation banks has remained broadly stable. Growth fell in 9M18 and is set to remain muted.

Fitch Affirms Mersin at 'BB+'; Outlook Negative

Fitch Ratings has affirmed Mersin Uluslararasi Liman Isletmeciligi A.S.'s (MIP, or Mersin) USD450 million senior unsecured debt rating at 'BB+' with a Negative Outlook. 

Fitch Affirms Istanbul's LT FC IDR at 'BB'; Outlook Negative

Fitch Ratings has affirmed the Metropolitan Municipality of Istanbul's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB ' and 'BB+', respectively with Negative Outlooks.

Turkey State Bank Capital Increase Fits With Our Support View

Turkey's decision in April 2019 to give a capital increase to state-owned banks is further proof of our view that the Turkish sovereign has a strong propensity to support these banks, Fitch Ratings says. 

Challenging Year Ahead for Turkish Consumer Companies

2019 will be a challenging year for the Turkish consumer sector as consumer sentiment will remain downbeat, weighing on the companies' sales volumes and product mix and impairing their ability to pass through steep cost increases, Fitch Ratings says. 

Fitch Assigns OYAK First-Time IDR 'BB+'; Outlook Stable

Fitch Ratings has assigned Turkey based Ordu Yardimlasma Kurumu (OYAK) Holding a Long-Term Issuer Default Rating (IDR) of 'BB+'. The Outlook is Stable.

Contacts

Turkey

Pelin Yazgan

Country Manager, Business & Relationship Management

Financial Institutions, Non-bank Financial Institutions, International Public Sector, Sovereign

+44 (0) 203 530 1313

Turkey

Romain Moulay

Business & Relationship Management

Non-Financial Corporates

+44 (0) 203 530 1876

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