Moody’s Investors Service downgrades 13 Turkish banks

16 September 2020
365 Views

Moody’s Investors Service downgraded 13 Turkish banks, just days after downgrading the Turkish economy’s credit rating.

The outlooks on the long-term deposit and debt ratings of all the Turkish banks rated by Moody’s remain negative, in line with the negative outlook on the sovereign rating. The negative outlooks reflect the downside risks associated with a balance of payments crisis, which could lead to capital controls and restrictions on foreign currency outflows.

Moody’s has maintained the Macro Profile it assigns to Turkey at Very Weak+.

It also says an upgrade is unlikely – while the downgrade could be caused by a host of factors combined with Turkey’s inability to react appropriately – an indirect critique of Erdogan’s centralised style of power.

The blow is particularly severe for the Turkish President, as Turkish banks are at the centre of his efforts to finance his exorbitant projects, to continue to provide cheap loans to Turks, but also to be able to intervene in foreign exchange markets to contain the slump of the Lira.

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.

You may be interested

Two Greek islands in best-hidden of the Mediterranean: Telegraph
GREECE
shares40 views
GREECE
shares40 views

Two Greek islands in best-hidden of the Mediterranean: Telegraph

Panos - Jun 18, 2021

British media outlet Telegraph included the Greek islands of Karpathos and Alonissos in its top 20 holiday destinations in the…

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths
GREECE
shares44 views
GREECE
shares44 views

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths

Panos - Jun 18, 2021

Greece announced that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 519, of which 2…

Greece: Caroline was murdered by her husband!
GREECE
shares29 views
GREECE
shares29 views

Greece: Caroline was murdered by her husband!

Panos - Jun 18, 2021

Charalambos Anagnostopoulos, the husband of 20-year-old Caroline Krauts, is according to the information available to the police her killer. The…

Leave a Comment

Your email address will not be published.