MOODY'S DOWNGRADES 13 TURKISH BANKS; OUTLOOKS REMAIN NEGATIVE

Moody's Investors Service has today downgraded (1) the foreign currency long-term deposit ratings of 12 banks in Turkey;  the long-term counterparty risk ratings (CRR) and the long-term counterparty risk assessments (CRA) of six banks; and the long-term senior unsecured rating of one bank by one notch and the long-term foreign currency CRR of three banks by two notches. The standalone baseline credit assessments (BCAs) and other ratings of these banks and of the other four Turkish banks rated by Moody's are unaffected by this rating action.

The downgrades on the 13 impacted banks are driven by Moody's downgrade, on 11 September 2020, of the Government of Turkey's bond rating to B2 with negative outlook from B1 with negative outlook. The downgrade of Turkey's sovereign rating resulted in the lowering of the ceilings for foreign currency deposits to Caa1 from B3 and for foreign currency bonds to B2 from B1. 
 
Moody's has maintained the Macro Profile it assigns to Turkey at Very Weak+.