Fitch affirms Garanti

Fitch Ratings said it affirmed Turkiye Garanti Bankasi AS issuer default ratings at long-term foreign currency BB, long-term local currency BB+ and short-term foreign and local currency B.

The outlook is stable.

The long-term foreign-currency issuer default rating is constrained by Turkey's BB country ceiling, and the long-term local-currency issuer default rating is rated two notches above the sovereign's due to the bank's stand-alone financial strength, Fitch said.

The issuer default ratings are driven by the issuer's improving profitability, with its expansion into retail segments, good growth prospects given Turkey's dynamic economy and improved market share, the agency said.

The company's debt has grown faster than industry averages but the company is protecting its tier 1 capital through asset sales and securities portfolio management, Fitch said. The issuer's structural maturity mismatch and liquidity risks are mitigated by its diversified funding base, solid reputation and good retail deposit share, the agency said..

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