International credit ratings agency Moody’s has published its Outlook Report for Financial Institutions of Emerging Markets, titled “2021 outlook negative as operating environments heal from pandemic and asset risk remains a wild card” as of November 30th, 2020
In its outlook report, Fitch foresees a difficult operating environment for Turkish banks. The agency’s comment regarding Turkish banks was as follows:
“Turkish banks’ creditworthiness will remain weak and under pressure. This stems from the country’s rising external vulnerability and the likelihood of a balance-of-payments crisis because of the authorities’ inadequate policy reaction. Combined with the impact of the coronavirus outbreak, these factors will result in a difficult operating environment in 2021. Despite a challenging economic environment and funding market conditions for Turkish banks, Turkish banks' reliance on short-term wholesale foreign funding has reduced moderately to $44 billion as of June 2020 from $64 billion available as of April 2019. Foreign currency liquidity has been maintained at broadly similar levels of $90 billion as of June 2020. Turkish banks have also continued to maintain access to the syndicated loans market throughout the coronavirus pandemic.”