...Support-Driven IDRs: QNB Finansbank A.S.'s Issuer Default Ratings (IDRs) are driven by support from its 99.9% shareholder, Qatar National Bank (QNB, A+/Stable). The ratings reflect the bank's ownership, common branding and strategic importance to its parent. The Negative Outlook on the IDRs mirrors that on the Turkish sovereign. IDR Below That of Sovereign: QNB Finansbank's Long-Term Foreign-Currency (FC) IDR is one notch below that of the sovereign. This reflects Fitch Ratings' view that the risk of government intervention in the banking sector would be higher than that of a sovereign default, in the in event of a marked deterioration in Turkey's external finances. Operating Environment Pressures: QNB Finansbank's operations are concentrated in the high-risk Turkish operating environment, which deteriorated significantly in 2018. This was due to material Turkish lira depreciation, sharp increases in lira interest rates and weakening GDP growth. The bank has a moderate franchise (4.1% share...
