Lukashenko says he may quit as president
Belarus hits EU with tit-for-tat sanctions
Belarusian police introduce colour-coded torture system for detained protesters
Kremlin publicly condemns Belarusian police brutality in hint of growing frustration with Lukashenko
Russian services PMI rises to 48.2, but remains underwater as recovery continues to slow
Russia to start mass vaccinations on December 7
Azerbaijan’s Aliyev calls on Armenia, Russia, Turkey and Iran to assist in creating Nakhchivan land corridor
FPRI BMB Russia: Sberbank releases a three-year transformation strategy to e-commerce concern
Ukraine’s banking sector continues recovery, but profits still lagging last year
Ukraine’s real wages up over 10% in October but have been stagnant in dollar terms for almost a year
FPRI BMB Ukraine: Public has confused opinions on resolving the Donbas conflict
Western Balkans plus Ukraine subsidised coal with over €900mn in 2018-2019
Estonian parcel robot firm Cleveron eyes €30mn state loan
Estonia’s chief auditor says €1bn in state COVID-19 loans issued haphazardly
Economic sentiment in CEE falls in November as recovery momentum splutters
Estonian animation studio Imepilt to hold IPO
Brighter days ahead: The economic bounce back in 2021
Central, Southeast Europe stock markets jump in anticipation of COVID-free future
VISEGRAD BLOG: An easing of trade tensions but still an uncertain situation for export-oriented Central Europe
Hungary's PM risks isolation as Poland mulls dropping EU budget veto
Poland ready to back down from veto of EU budget
Hungary's ruling party in damage control mode after MEP sex scandal bombshell
Poland’s PMI remains stuck just above the improvement line at 50.8 in November
Czech companies dominate this year’s Deloitte Technology Fast 50 CE
Coronacrisis to get worse before it gets better forecasts wiiw
EU diplomats say no chance of Bulgaria removing veto for Skopje to start EU accession talks
IMF says downside risks to Albanian economy are increasing
EU ministers fail to agree on launch of accession talks with Albania and North Macedonia
Western Balkans commit to green agenda and regional common market at Sofia summit
Bosnia’s opposition ousts nationalist parties in major cities
Bosnia’s main ethnic parties fight to hold onto power in local elections
Southeast Europe’s EU members to get biggest boost from next budget and recovery funds
Bulgaria imposes 3-week lockdown to slow down COVID-19 spread
CEE politicians highlight trade and security ties as they congratulate Biden
Breakaway Transnistria fully under Sheriff’s control as Obnovlenie party sweeps board in parliament election
Moldova’s presidential election is over, now the battle for the parliament begins
Moldova’s foreign policy reset
Russian establishment quick to congratulate Moldova's new president-elect
Rising COVID-19 cases put intense pressure on CEE healthcare systems
MEPs urge European Commission to act against Hungarian media financing in North Macedonia and Slovenia
North Macedonia mulls decriminalising cannabis to boost tourism
Retail surpass pre-crisis peak as Romanians shop instead of holiday
Romanian venture capital firm Catalyst launches new €40mn-50mn fund for TMT
Aegon to sell its CEE business to Vienna Insurance for €830mn
The state is back in business
Slovenian PM Jansa stands alongside Hungary and Poland in EU rule of law row
BEYOND THE BOSPORUS: Turkish number crunchers deliver November inflation surprise of 14%
Erdogan needs to go says analyst assessing Turkey’s economic collapse
Ukraine strikes deal with Turkey to produce killer drones instrumental in Karabakh conflict
In Karabakh deal, as many questions as answers
Protesters flood Yerevan demanding Armenia’s “traitor” PM quit over Nagorno-Karabakh surrender
Who emerge as the real winners from the bloody Nagorno-Karabakh conflict?
Below average 2020 wine production destined for volatile and uncertain global market
Iran calls on Saudis to limit $67bn defence spending to Tehran’s $10bn
Iranian prosecutors pledge to pursue Trump for Soleimani killing even after he leaves White House
No reaction from Kazakh elites as bombshell FT report says Nazarbayev’s son in law siphoned millions from pipeline scheme
UK court freezes $5bn in assets connected to fugitive Kazakh banker Ablyazov
Attack of the Debt Tsunami: global debt soars to a new all-time high
Kyrgyzstan's proposed new constitution provokes widespread revulsion
Kyrgyzstan's China debt: Between crowdfunding and austerity
CFC joins RWC in assessing KAZ Minerals buyout offer as under-valuation
China business briefing: Not happy with Kyrgyzstan
Mongolian coal exports to China paralysed as Beijing demands virus testing of truck drivers
Mongolia fears economic damage as country faces up to its first local transmissions of coronavirus
Mongolia in lockdown after suffering first local coronavirus transmissions
Mongolia’s wrestling culture: From the grasslands to the cage
No surprises in Tajikistan as Rahmon retains presidency with 91% of vote
A Tajikistan poised on verge of economic calamity set for vote
Tajikistan revives on-off dispute with Iran
Turkmenistan: The dammed united
Turkmenistan: Everybody yurts, sometimes
Dirty money investigation reviews identified payments worth $1.4bn linked to Turkmenistan
Uzbekistan unveils extensive privatisation programme
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Fitch Ratings has downgraded the Long-Term Foreign Currency Issuer Default Ratings (LTFC IDRs) of 24 Turkish banks and their subsidiaries, in most cases by two notches, the ratings agency said on July 20.
The banks' Long-Term IDRs have been removed from Rating Watch Negative, but have been assigned Negative Outlooks.
The agency has also downgraded the Viability Ratings (VRs) of 12 banks.
On July 13, Fitch cut Turkey deeper into junk, downgrading its Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB' from 'BB+' with a negative outlook. It said the downgrade was driven by increased downside risks to macroeconomic stability and the recent deterioration in economic policy credibility.
Fitch also downgraded seven Turkish corporates on the day.
Coca Cola Icecek was downgraded to BBB- from BBB. Emlak Konut, Ronesans Gayrimenkul and Turkcell Finansman were cut from BB+ to BB. Turk Telekom, Turkcell and Tupras were cut from BBB- to BB+. All the companies were assigned with negative outlook.
Fitch confirmed only Arcelik’s rating at BB+ with a stable outlook.
Also on July 20, the rating agency said in a separate statement that it affirmed Sisecam’s LTFC IDR at BB+ but it cut the outlook to negative from stable.
The downgrades of the banks' VRs reflected the increased risks to performance, asset quality, capitalisation and liquidity and funding profiles, following the recent period of market volatility and given the increased risk of a hard landing for the Turkish economy and a material deterioration in investor sentiment, the rating agency said.
Fitch forecasts GDP growth of 4.5% in 2018, underpinned by solid growth seen in 4M18, but with the economy likely to contract for the rest of the year, and fall to 3.6% growth in 2019.
The Turkish banking industry's NPL ratio (loans overdue by 90+ days) was a still moderate 3% at end-1H18, with total reserve coverage of 122%. However, group 2 loans averaged 8% at the larger banks in the sector, according to the statement by Fitch.
Fitch expects sector profitability to moderately weaken in 2H18 and into 2019 due to higher funding costs—which banks may not be able to fully pass on—slower credit growth and higher impairment charges. Performance could deteriorate more significantly in case of a marked weakening of asset quality. The sector's return on average equity (ROAE) was a solid 14.7% in 2017 and 15.9% in 5M18, supported by Credit Guarantee Fund-driven loan growth in 2017 (21%), solid margins and manageable impairment charges.
The downgrades of the LTFC IDRs of Akbank and Isbank to 'BB-' from 'BB+' were driven by the downgrades of the banks' VRs.
The LTLC IDRs of the state-owned commercial banks (Ziraat, Halk, Vakifbank and Vakif Katilim) and development banks (Turkiye Kalkinma Bankasi-TKB, Turk Eximbank, TSKB) are aligned with those of the Turkish sovereign and, as a result, have been downgraded by one notch to BB-, except TKB.
The two-notch downgrade (one notch for Denizbank) of the foreign-owned banks' (Garanti, Yapi Kredi, TEB, QNB, ING, Kuveyt Turk, Alternatifbank, Turkiye Finans, Burgan Bank, ICBC Turkey and BankPozitif) LTFC currency IDRs and FC senior debt ratings, to the level of the sovereign LTFC IDR, reflects Fitch's view that it is no longer appropriate to rate banks above the sovereign in Turkey.
Fitch Ratings has also downgraded Istanbul Takas ve Saklama Bankasi A.S.'s (Takasbank) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'BB' from 'BB+', the rating agency said in a separate statement.
The Turkish Treasury has sold $2.25bn of 10-year eurobonds at a coupon of 5.95% and a yield to ... more
UzAuto Motors is considering a $300mn eurobond issue, according to data published on Uzbekistan’s Unified Portal of Corporate Information on October 30.
“We are pleased to inform that UzAuto ... more
The Capital Markets Board of Turkey (SPK) has approved Istanbul Municipality’s application to sell up to €554mn of eurobonds, the SPK said on October 22 in its weekly ... more
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