(MENAFN) International credit evaluator Fitch Ratings announced on Monday that it had elevated the long-term foreign-currency issuer default ratings of several major Turkish lenders, including Ziraat Bank, VakifBank, the Industrial Development Bank of Türkiye (TSKB), Halkbank, Emlak Participation Bank and Vakif Participation Bank.

In its declaration, Fitch stated that it had lifted the long-term foreign-currency issuer default ratings of Ziraat Bank, VakifBank and TSKB from "B+" to "BB-."

The agency further emphasized that these institutions’ viability ratings had also been raised from "b+" to "bb-," while their long-term local-currency issuer default ratings remained at "BB-" and their national long-term ratings stayed at "AA(tur)."

The announcement added that the outlooks for these banks were designated as "stable."

Additionally, Fitch reported that Arap Turk Bank’s (ATB) long-term issuer default rating had been boosted from B to B+, its viability rating from b to b+, and its national long-term rating from A-(tur) to A(tur), all accompanied by a stable outlook.

"The upgrades reflect Fitch's improved assessment of the Turkish operating environment, as shown by the recent revision of the operating environment score for Turkish banks to 'bb-'/stable from 'b+'/positive.

The upgrades also consider the banks' stable business and financial profiles maintained in the context of improved operating conditions," Fitch explained in the report.

The agency also underlined that the government support ratings for Ziraat Bank, VakifBank and TSKB were raised from b+ to bb-, indicating the authorities’ view that their capacity to back the banking sector in foreign currency has improved thanks to stronger foreign-exchange reserves.

MENAFN18112025000045017167ID1110360317