New York, March 08, 2022 -- Moody's Investors Service ("Moody's") has completed
a periodic review of the ratings -and other ratings that are associated
with the same analytical units for the rated entity(entities) listed below.
The review was conducted through a portfolio review discussion held on
1 March 2022 in which Moody's reassessed the appropriateness of
the ratings in the context of the relevant principal methodology(ies),
recent developments, and a comparison of the financial and operating
profile to similarly rated peers. A possible outcome from periodic
reviews is a referral of a rating to a rating committee.
This publication does not announce a credit rating action and is not an
indication of whether or not a credit rating action is likely in the near
future. Credit ratings and outlook/review status cannot be changed
in a portfolio review and hence are not impacted by this announcement.
Key Rating Considerations
The principal methodology used for this review was Banks Methodology published
in July 2021. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
Key rating considerations on a forward-looking basis may include
but are not limited to the following summarized below.
Asset Risk: a bank's asset risk is fundamental to creditworthiness
because banks have high leverage, which implies that a small deterioration
in asset value has a large effect on solvency. Credit quality problems
are typically at the root of most bank failures, even though these
problems can take a variety of forms, for example a deteriorating
value of the loan collateral, resulting in higher losses.
Asset risk includes a bank's other assets as well may also be vulnerable
to other non-lending risk including market risk and operational
Capital: asset risk and the need for capital go hand in hand.
The greater the risk of unexpected loss, the more capital a bank
needs to hold in order to retain the confidence of creditors, which
enables the bank to fund itself and to shield bondholders from loss.
Profitability: profitability is an important indicator of an institution's
ability to generate capital, and is hence another measure of its
ability to absorb losses and recover from shocks. A bank with weak
or negative profitability has less ability to absorb asset risks than
one with strong internal capital generation capacity, other things
Funding Structure: a bank's funding structure has a strong
bearing on its probability of failure or requiring assistance, because
some sources of funds are less reliable than others. A bank that
makes significant use of an unreliable funding source — perhaps
short-term in nature, or from particularly risk-sensitive
counterparties — is more likely to suffer periodic difficulties
in refinancing its debt, putting it at greater risk of needing support.
Liquid resources: to provide a full picture of liquidity,
an assessment of the funding structure of a bank has to be viewed in the
context of the composition of its assets. Liquid resources are
enhanced when a bank has high-quality liquid assets that can both
be readily sold or pledged for cash in private markets in response to
its funding counterparts' changing behavior, or that can in
extremis be repoed with central banks under standard terms.
Qualitative considerations: There are occasionally other bank-specific
considerations that we believe can influence core fundamentals.
These additional factors are typically qualitative in nature, although
in some cases our assessments may be informed by certain quantitative
indicators. These factors include Business Diversification,
Opacity and Complexity and Corporate Behavior.
The bank ratings are ultimately derived from the application of our Support
and Structural Analysis, which comprises the following:
Affiliate Support, where an entity may be supported by other entities
within a group, or occasionally affiliated third parties,
thus reducing its probability of default.
Loss Given Failure (LGF), where we undertake a liability-side
analysis to assess the impact of a failure — absent government support
— in terms of the potential resultant loss on the bank's rated
debt instruments. We also incorporate instrument-specific
Government Support, where an entity may be supported by public bodies,
such as local, regional, national, or supranational
institutions, again reducing the risk for some or all instruments.
We assess this using our JDA framework.
This announcement applies only to Rated Entities with EU rated,
UK rated, EU endorsed and UK endorsed ratings. Rated Entities,
with Non EU rated, non UK rated, non EU endorsed and non UK
endorsed ratings may be referenced herein to the extent necessary,
if they are part of the same analytical unit.
Please see the Issuer page on www.moodys.com, for
each of the ratings covered, most updated credit rating action,
rating history, and Credit Rating action Press Release including
the rating rationale and factors that could lead to a rating upgrade or
List of Issuers/Rated Entities
• Akbank T.A.S.
• Alternatifbank A.S.
• Denizbank A.S.
• Export Credit Bank of Turkey A.S.
• HSBC Bank A.S. (Turkey)
• JSC Bank of Georgia
• JSC TBC Bank
• Liberty Bank JSC
• Nurol Investment Bank A.S.
• Odea Bank A.S.
• QNB Finansbank A.S.
• Sekerbank T.A.S.
• T.C. Ziraat Bankasi A.S.
• Turk Ekonomi Bankasi A.S.
• Turkiye Garanti Bankasi A.S.
• Turkiye Halk Bankasi A.S.
• Turkiye Is Bankasi A.S.
• Turkiye Vakiflar Bankasi T.A.O.
• Yapi ve Kredi Bankasi A.S.
This publication does not announce a credit rating action. For
any credit ratings referenced in this publication, please see the
ratings tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
Moody's Investors Service, Inc.
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New York, NY 10007
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