18.02.2025 14:21
Fitch Ratings stated that the improvement in Turkey's foreign exchange positions is a positive development for banks. It was reported that even if Turkey's credit rating does not increase, it is possible for Turkish banks' ratings to improve due to these developments.
The international credit rating agency Fitch Ratings has revised the operating environment score (OE) for Turkish banks to 'B+'/positive. In the latest statement from the agency, it was reported that this rating could increase due to the decline in inflation figures in Turkey and the reduction of external vulnerabilities.
In the bank's statement, it was reminded that the high inflation figures pose a risk for banks. However, it was noted that if inflation rates decrease and the current environment improves, the credit ratings of Turkish banks could align with Turkey's country rating (BB-/Stable).
"BANKS' PROFITS MAY INCREASE FURTHER"
Fitch Ratings also predicts that the profitability of banks could improve with the decrease in interest rates in Turkey. Currently, it is stated that banks are under margin pressure due to high required reserve ratios and credit growth limits, while a relaxation in interest rates could widen margins and alleviate this pressure. On the other hand, inflationary pressure on operating expenses continues to affect profitability.