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Moodyâ€™s downgrades rating of main shareholder of Ziraat Bank Azerbaijan

13 March 2018 07:23 (UTC +04:00)

Moody's Investors Service downgraded the long-term foreign currency senior unsecured debt and local currency deposit ratings of Ziraat to Ba2 from Ba1, and changed the outlook to stable from negative.

According to the agency, the bank's long-term foreign currency deposit rating was downgraded to Ba3 from Ba2 (constrained by the lower sovereign ceiling at Ba3), and the outlook changed to stable from negative: ‘The BCA was downgraded to ba3 from ba2. The principal driver for the rating action is the downgrade of the sovereign rating to Ba2 with stable outlook from Ba1 from negative outlook and the lowering of foreign currency deposit ceiling to Ba3 from Ba2. While Moody's continues to assume a very high probability of support for this fully government-owned bank, the rating action reflects a weakening in the government's capacity to provide support in case of need, as signaled by the downgrade of the sovereign rating. The stable outlook on Ziraat's long-term senior unsecured debt and deposit ratings is consistent with the outlook on Turkish sovereign rating’.

Ziraat Bank holds 99.98% of Ziraat Bank Azerbaijan’s equity.