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Credit rating agency Moody’s has downgraded financial institutions in Turkey after changing Turkey’s credit outlook from “stable to negative” on August 17.
Moody’s downgraded cover note of six Turkish banks. In total, Moody’s downgraded 20 financial institutions in Turkey.
Moody’s downgraded export collateral trust bonds of Akbank, Şekerbank, Garanti Bankası, Türkiye İş Bankası, Vakıfbank and Yapı Kredi Bankası.
The standalone baseline credit assessments (BCA) of 14 banks were downgraded by one notch, while the BCAs of four banks (Denizbank A.S., Odea Bank A.S., Turkiye Is Bankasi A.S., Turkiye Sinai Kalkinma Bankasi A.S.), were downgraded by two notches; the Corporate Family ratings (CFR) of the two finance companies were downgraded by one notch.
Response by the Central Bank
In the wake of Moody’s downgrade, the Central Bank has doubled overnight borrowing limits of the banks.
In its statement, the Central Bank announced that it doubled overnight borrowing limits of the banks to be in effect since today (August 29).
Dollar is 6.45 TRY as of 3:30 p.m. (HA/TK)
