US ratings agency Thomson BankWatch (TBW) has assigned local currency short and long-term debt ratings to Akbank, Demirbank, Disbank and Tutunbank.
TBW is currently expanding its Middle East coverage (see Finance). The assessments of the four banks are:
Akbank was assigned the top LC-1 grade for short-term local currency debt and LC-AA for long-term local currency debt. 'Akbank's profitability, capital and asset quality are among the best of the Turkish and other emerging markets banks,' TBW senior vicepresident Ed Thompson said in a statement issued with the ratings on 7 May.
Demirbank was assigned LC-1 for shortterm lira debt and LC-A for long-term debt.
'Through a more refined strategic direction, management has been able to bolster earnings to significant levels (without undue risk), maintain a liquid balance sheet and enhance capitalisation to very satisfactory levels,' Thompson said.
Disbank was assigned an LC-1 for shortterm debt and no long-term debt rating. 'On a stand-alone basis, Disbank's profitability improved sharply from a severely depressed 1994. The bank returned to its basic business of foreign trade and securities trading for customers,' ThW's commentary said.
Tutunbank received an LC-2 for short-term lira debt and no long-term debt rating. 'After several years of weak earnings associated with poor asset quality and a bloated expense structure, Tutunbank demonstrably improved its profitability in 1995,' Thompson said. The bank's emphasis on small to medium-sized customers had served it well over the past few years as lending volumes have grown markedly, ThW commented.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.