The international credit ratings agency Fitch Ratings revised the outlook for 20 Turkish banks from “negative” to “stable” following Turkey’s bettering credit score.
The move is similar to the outlook upgrade on Turkey’s long-term issuer default ratings as “BB-” from “negative” to “stable” on November 1, Fitch said in the statement.
Fitch also revised the ratings of the financial subsidiaries of the banks to stable.
The statement also emphasized that Akbank and Isbank had their local currency (TLC) long-term IDR rating upgraded fom negative to stable.
In the statement, the actions reflect reduced downside risks to the sovereign’s ability to support banks, and the lower near-term likelihood of a sharp deterioration in Turkey’s external finances, and therefore of government intervention in the banking system,” Fitch said.
Fitch Ratings further stated that this lowers the chances of a government intervention in the banking system significantly.