Nine Turkish Banks Raised by Fitch on Sovereign Investment Grade

Nine Turkish lenders received upgrades from Fitch Ratings today following its boost for the country to investment grade last week.

Fitch lifted to investment grade TC Ziraat Bankasi AS, Turkey’s biggest government-owned lender, and three other state banks Turkiye Halk Bankasi AS (HALKB), Turkiye Vakiflar Bankasi TAO (VAKBN) and Turkiye Kalkinma Bankasi AS (KLNMA), Fitch said in a statement. The ratings company increased their long-term foreign-currency issuer default ratings to BBB- from BB+. Five foreign-owned banks including Turk Ekonomi Bankasi AS (TEBNK) were raised to BBB from BBB-.

The upgrade for the state banks reflects the improved ability of the government to provide support in case of need, Fitch said. Fitch boosted Turkey’s foreign-currency ranking to BBB- from BB+ and its outlook to stable Nov. 5, citing easing near-term financial risks, a moderate and declining government debt burden, a sound banking system, favorable growth prospects and “a relatively wealthy and diverse economy.”

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To contact the editor responsible for this story: Gavin Serkin at

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