Fitch: Emlak Katilim’s Ratings Downgraded to B; Outlook Negative

Turkey’s Turkiye Emlak Katilim Bankasi AS Long-Term Foreign Currency (LTFC) Issuer Default Rating (IDR) was downgraded to B from B+ by Fitch Ratings (Fitch), with the Outlook revised to Negative from Stable.

The LTFC IDR downgrade and Outlook reflects Turkey’s weaker foreign currency reserves position, and therefore its limited ability to provide support to Emlak Katilim in foreign currency if needed. This has also led to Emlak Katilim’s Support Rating Floor (SRF) being lowered to B from B+. However, Fitch notes that Emlak Katilim’s LTFC IDR continues to be supported by state assistance which Fitch expects would be provided to Emlak Katilim if required. Fitch has also affirmed Emlak Katilim’s...