Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

MOODY'S LOWERS RATINGS OF FOUR TURKISH BANKS, WITHDRAWS RATINGS OF OTTOMAN BANK AND CHANGES RATING OUTLOOKS TO STABLE FOR ALL TURKISH BANKS

15 Jan 2002
MOODY'S LOWERS RATINGS OF FOUR TURKISH BANKS, WITHDRAWS RATINGS OF OTTOMAN BANK AND CHANGES RATING OUTLOOKS TO STABLE FOR ALL TURKISH BANKS Moody's Investors Service announced today that it has downgraded its ratings for four Turkish banks -Akbank, Turkiye Garanti Bankasi, Turkiye Is Bankasi and Turk Ekonomi Bankasi - and withdrawn the ratings of Ottoman Bank. The rating actions conclude Moody's review of the Financial Strength Ratings (FSRs) of the five Turkish banks and the local currency deposit ratings of Akbank and Ottoman Bank.

At the same time, Moody's has assigned first-time local currency deposit ratings for Garanti Bankasi and Turkiye Is Bankasi.

The rating changes are as follows:

- Akbank: FSR downgraded to D+ with a stable outlook from C; long-term local currency deposit ratings downgraded to Baa2 from A3. The Prime-2 short-term local currency deposit rating is confirmed.

- Turkiye Garanti Bankasi: FSR downgraded to D+ with a stable outlook from C; local currency deposit ratings assigned at Baa2/Prime-2.

- Isbank: FSR downgraded to D with a stable outlook from C-; local currency deposit ratings assigned at Baa2/Prime-2.

- Turk Ekonomi Bankasi: FSR downgraded to D+ from C-.

- Ottoman Bank: B3/Not-Prime foreign currency deposit ratings, C- financial strength rating and Baa1/Prime-2 local currency deposit ratings are all withdrawn.

The rating agency added that it has also changed to stable from negative the outlook for the B1 senior debt rating of Eximbank and the outlooks for the B3 long-term foreign currency deposit ratings of all Turkish banks rated by Moody's following a similar change in the country ceilings. The banks affected by the outlook change on their foreign currency deposit ratings are: Akbank, Turkiye Garanti Bankasi, Turkiye Is Bankasi, Turk Ekonomi Bankasi, Finansbank, Disbank, Pamukbank, Turkiye Vakiflar Bankasi, Kocbank, T.C. Ziraat Bankasi, Toprakbank.

TURKEY'S WEAK OPERATING ENVIRONMENT CONSTRAINS BANK RATINGS
Moody's said that the country's operating environment - one of the main pillars in Moody's assessment of banks' FSRs - remains weak, thus making it difficult for banks to attain FSRs higher than D+ until macro-economic conditions improve.

Moody's noted that Turkey's operating environment is weaker than it was at the time of the initial assignment of the banks' FSR ratings. The B3 domestic debt rating and the B1 foreign currency debt rating are indicative of such a weak operating environment.

According to Moody's, the financial crises that hit Turkey in 2000 and 2001 had a material negative impact on the Turkish economy and on most banks operating in the country. Moody's estimates that GNP contracted by around 8.5% in 2001, while interest rates and average inflation remained high at the end of 2001.

The rating agency added that the severe contraction in economic activity in 2001 has led to the closure of thousands of businesses in Turkey, which in turn resulted in a sharp rise in unemployment. In addition, the devaluation of the Turkish Lira (TRL) and the rise in inflation have eroded the purchasing power of consumers in Turkey. Moody's noted that these factors have had a direct impact on Turkish banks' asset quality, with aggregate non-performing loans for the system reaching around 18% at the end of September 2001. Furthermore, the prospect for good credits in Turkey for 2002 is bleak with an expected mild growth of 2% in GNP for this year.

Moody's also voiced concerns regarding the increase of related party loans among large banks in Turkey relative to their shareholders' equity. Although this increase is in part due to the shrinking equity base, the scarce lending opportunities and the weaker financial situation of group companies have led many banks to increase their exposure to such companies. Moody's stated that it takes a cautious view regarding connected lending in Turkey and that such activities depress banks' FSRs.

In Moody's view, it has become difficult for Turkish banks to generate quality earnings in such an environment. This is happening at a time when such earnings are badly needed to replenish banks' real capital, which has been significantly eroded during 2001 and continues to be eroded in view of the high inflation.

Nevertheless, Moody's believes that the recent banking reforms are impressive and are likely to result in a sounder banking system, which will be less vulnerable to the types of shocks that occurred in November 2000 and February 2001. In addition, the recent announcement by the Turkish financial authorities of their intention to help banks improve their capital adequacy ratios is indicative of the expected support from the government as well as the need for support of the banking system.

TURKISH BANKS AFFECTED BY THE RATING ACTIONS

AKBANK
Akbank fared relatively better than most of its peers through the crisis period, but could not fully escape the impact of the weakening operating environment. On an inflation-adjusted basis, its equity was eroded in first three-quarters of 2001, while the related party lending remained at a high level. In addition, the profitability of the bank suffered during the period.

Moody's said that the Baa2/P-2 local currency rating takes into account not only the intrinsic financial strength of the bank, but also the likelihood of support from Akbank's owners, the Sabanci Group.

OTTOMAN BANK (Ottoman)
Moody's has withdrawn all the ratings of Ottoman following the merger of the bank's operations with those of Turkiye Garanti Bankasi (Garanti) and the withdrawal of its banking licence by the Banking Regulation and Supervision Agency (BRSA), the banking authority of the Republic of Turkey.

Prior to its merger with Garanti, Ottoman had merged with Korfezbank, a sister bank owned by the Dogus Group. As Korfezbank had sustained significant losses following the February 2001 crisis, Moody's considers the merger with Ottoman essentially as a bail-out of Korfezbank. Just prior to its merger with Garanti, Ottoman was left with practically no capital.

TURK EKONOMI BANKASI (TEB)
Moody's said that the difficult operating environment also affected TEB's financial standing. Even though a conservative attitude helped the bank protect its asset quality, also after the crisis on inflation adjusted basis, the bank's capital base was weakened and profitability suffered.

TURKIYE GARANTI BANKASI (Garanti)
According to Moody's, Garanti's D+ FSR is mainly driven by the weak operating environment and the bank's merger with Ottoman, which has not only provided Garanti with the largest market share in total assets among private banks in Turkey but also has the potential to enhance Garanti's overall franchise. In addition, the merged entity is likely to have good efficiency ratios stemming from a common back office, lower combined number of employees and other cost-saving measures.

Having evaluated the benefits as well as the disadvantages of the merger, Moody's concludes that the poor fundamentals of Ottoman have weakened Garanti's overall financial strength. Moody's also notes that, had it not been for the US$310 million capital support from the Dogus Group, Garanti would have ended the year with possible deficiencies in regulatory capital. Although such support boosts the capitalisation ratios to adequate levels, Moody's still believes that additional capital would be required to sustain healthy growth over the next few years. Moody's expressed its concern about the large amount of government securities that Garanti will inherit from Ottoman.

Moody's said that the D+ rating reflects a significant deterioration in Garanti's asset quality, with gross NPLs increasing dramatically during the first nine months of 2001 to reach nearly 6.5% of total cash loans. Moody's additional concern lies in the low coverage of such NPLs by provisions, with a coverage ratio of 44% at the end of September 2001 compared with 100% at the end of 2000.

As regards the issue of related party lending, Moody's believes that the increase in such activities is a concern, even though the amount relative to the bank's shareholders' equity remains lower than that of its peers. Moody's does not view favourably the high number of equity participations on Garanti's balance sheet and notes that a divestment from such participations would have a positive impact on the bank's financial health.

Moody's said that the Baa2/Prime-2 local currency rating of Garanti is higher than would be suggested by the financial strength rating of the bank, reflecting the likelihood of strong support from the Turkish financial authorities and the Dogus Group, Garanti's largest shareholder.

TURKIYE IS BANKASI (Isbank)
Moody's said that in addition to the negative effect of the weak operating environment, Isbank's D FSR reflects the significant contingent liability that could arise from any the possible support required by its equity participations and in particular by its GSM joint venture. The crisis has negatively affected the potential growth of the GSM operation, and has delayed the cash flow it was expected to generate in the near term. Moody's concern is that such a trend could put additional pressure on the GSM operation's debt dynamics and drive Isbank to provide more financial support for an institution to which Moody's assigns high credit risk. The issue is compounded by the fact that related party loans as a percentage of shareholders equity are already at high levels consistent with a D FSR. Moody's added that until Isbank's GSM operation is well established, its financial health improves and related party loans are reduced, it would be difficult to upgrade the bank's FSR.

Moody's noted however, that Isbank's franchise remains very strong and has benefited from the flight to quality during the course of 2001. Its deposit base continues to grow and the bank had reached 9.8% market share in deposits at the end of September 2001 compared to 6.8% at the end of 2000.

On the other hand Moody's expressed its concern about the deterioration of Isbank's asset quality. The ratio of gross non-performing loans (NPLs) to gross loans had reached 6.7% at the end of September 2001 compared to 4.6% a year earlier. Moreover, while the coverage by provisions constituted 100% of NPLs in 2000, it stood at only 32% at the end of September 2001.

Moody's added that it has assigned Baa2/Prime-2 ratings for Isbank's local currency deposits. Such ratings are in-line with the ratings of its peers, namely Akbank and Garanti, despite the fact that Isbank's FSR is lower. The Baa2/Prime-2 ratings reflects Isbank's important role in Turkey's banking sector and the likelihood that the bank may receive support from the Turkish authorities if it were to encounter financial difficulties.

Akbank, Ottoman Bank, Turk Ekonomi Bankasi, Turkiye Garanti Bankasi and Turkiye Is Bankasi are all headquartered in Istanbul and had total consolidated assets of USD 11.57 billion, USD 3.4 billion , USD 2 billion, USD 14.5 billion and USD 21.1 billion respectively at the end of 2000.
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com