...Sound Profile, Stable Outlook: Fitch Ratings' base case is that the Turkish economy will continue to grow and that any moderate deterioration in the operating environment should be manageable for Akbank T.A.S. in light of its sound financial profile ¡ in terms of asset quality, performance and capitalisation ¡ and strong franchise. The bank's stand-alone creditworthiness, as reflected in its Viability Rating (VR) of `bbb-', drives the Issuer Default Ratings (IDRs). Turkish Challenges Weigh: Exposure to the volatile Turkish market is a key driver of Akbank's ratings and effectively caps the VR at `bbb-', despite its solid financial metrics. Downside risks have increased due to short-term political uncertainty, potential disruption to economic policy, lira and interest rate volatility, and slower GDP growth. Sound Loss-Absorption Capacity: Capitalisation is reasonable, supported by above-average reserve coverage of impaired loans (end-1H15: 95%) and solid internal capital generation. Pre-...
