Ziraat Bank 2016 Annual Report

CREDIT RATINGS ASSIGNED BY RATING AGENCIES

Ziraat Bank’s performance is rated by Fitch Ratings, Moody’s and JCR Eurasia Ratings. In annual meetings held with these agencies, the Bank provides detailed and transparent information on its progress achieved in core lines of business, its funding ability, asset quality, liquidity, capital structure and developments in risk management.

On 25 August 2016, Fitch Ratings revised all of the Bank’s credit outlooks from stable to negative, but kept the credit ratings unchanged. The rating agency confirmed the Bank’s credit ratings on 12 October 2016. On 20 July 2016, Moody’s placed the outlook on the Bank’s credit rating on negative watch. Following downgrading of Turkey’s credit rating from Baa3 to Ba1 on 23 September 2016, Moody’s revised the Bank’s long-term borrowing (FC and domestic currency) and deposit (domestic currency) ratings downwards from Baa3 to Ba1 on 26 September 2016, and changed all outlooks from negative to stable. JCR Eurasia Rating confirmed the Bank’s credit ratings on 17 November 2016.

Credit ratings assigned to the Bank as of 31 December 2016 are presented below.

Rating Agency	Category	Rating	Date
Fitch Ratings	Foreign Currency Long-Term IDR	BBB-	October 2016
	Outlook	Negative
	Foreign Currency Short-Term IDR	F3
	Local Currency Long-Term IDR	BBB-
	Outlook	Negative
	Local Currency Short-Term IDR	F3
	National Long-Term Rating	AAA (tur)
	Outlook	Stable
	Support Rating	2
	Support Rating Floor	BBB-
	Viability Rating	bbb-
Moody’s	Outlook	Stable	September 2016
	Outlook	Ba2
	Long-Term Bank Deposit Foreign Currency	Not-Prime
	Short-Term Bank Deposit Foreign Currency	Ba1
	Long-Term Bank Deposit Domestic Currency	Not-Prime
	Long-Term Bonds Foreign Currency	Ba1
	Long-Term Bonds Domestic Currency	Ba1
	Baseline Credit Assessment	ba2
	Adjusted Baseline Credit Assessment	ba2
JCR Eurasia	Long-Term International Foreign Currency	BBB-	November 2016
	Outlook	Stable
	Long-Term International Local Currency	BBB-
	Outlook	Stable
	Long-Term National Local Rating	AAA (Trk)
	Outlook	Stable
	Short-Term International Foreign Currency	A - 3
	Outlook	Stable
	Short-Term International Local Currency	A - 3
	Outlook	Stable
	Short-Term National Local Rating	A-1+ (Trk)
	Sponsor Support	1
	Stand Alone	A