State banks Halkbank, Vakifbank and Yapi Kredi, and major private lenders Akbank, Garanti, Isbank and Ziraat 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".
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".