Press Releases
Garanti Bank is assigned „BB+” long term IDR by Fitch with stable outlook
Bucharest, 05 December 2011 - Garanti Bank, one of the most dynamic and innovative banks in Romania, has been assigned by Fitch Ratings a long-term Issuer Default Rating (IDR) of "BB +" with stable outlook, and a Viability rating of "b".
Fitch's ratings reflect the support which Garanti Bank can receive from its parent bank, Turkiye Garanti Bankasi A.S. (TGB). In order to assess the probability of support, Fitch takes into consideration the financial and management commitment that the parent bank has proven so far to its Romanian subsidiary, the cross-border nature of the relationship between the two financial institutions, and the operational independence that Garanti Bank is expected to attain from TGB, in addition to its limited importance in the parent bank’s consolidated results.
The prudent approach to risk, its satisfactory asset quality, comfortable capital adequacy level and liquidity position are factors that had positive impact on the rating decision. Fitch also notes that the bank’s asset quality is significantly better than the sector average, which is due to the bank’s limited lending activity before the economic crisis.
The long term IDR has stable outlook, in line with its parent bank’s in Turkey.
"The rating assigned by Fitch places us on a very good position among the banks operating in Romania, taking into account the current market conditions. This is due to the prudent approach to risk and the responsible management of assets, confirming Garanti’s stability, even in this volatile global context, " said Murat Atay, CEO of Garanti Bank Romania.