State banks Halkbank, Vakifbank and Ziraat, and major private lenders Akbank, Garanti, Isbank and Yapi Kredi are among 20 Turkish financial institutions whose default ratings have been downgraded by Fitch. The downgrade comes as the government is struggling to meet its budget deficit targets of 3 percent this year and 4 percent next year. In addition, Fitch downgraded the viability ratings of 12 banks from BB to BB-, citing policy unpredictability and Turkey's "large external financing requirements".
State banks Halkbank, Vakifbank and Ziraat, and major private lenders Akbank, Garanti, Isbank and Yapi Kredi are among 20 Turkish financial institutions whose default ratings have been downgraded by Fitch. Depreciation of the Turkish lira, interest rate hikes and weaker growth outlook combined to put pressure on the banks' performance, the rating agency said. In addition, Fitch downgraded the viability ratings of 12 banks from BB to BB-, citing policy unpredictability and Turkey's "large external financing requirements".