...Standalone Profile Drives IDRs: Akbank T.A.S.s (Akbank) IDRs are driven by its Viability Rating (VR). The VR reflects the tough operating environment, tightening foreign-currency (FC) liquidity, and still sound but decreasing capitalisation. These factors are balanced by the banks sound management, which enables it to adapt its strategies to the needs of the changing operating environment, strong franchise and strong asset quality. Tough Operating Environment: The operating environment for Turkeys banks is increasingly tough, impacted by regulatory changes that limit the profitability of retail business, slowing credit demand, sharp interest rate movements, exchange rate volatility and political pressures. Changes in international investor sentiment toward emerging markets also represent a potential risk. However, Akbank has performed well through different cycles to date. Capitalisation Better Than Peers: Akbanks capitalisation is a key strength supporting its VR. Its Fitch core capital...
