... Issuer Default Ratings (IDRs) of T.C. Ziraat Bankasi A.S. are driven by its solid franchise, reasonable profitability, asset quality and capitalisation, and solid funding base, but also consider its exposure to the volatile Turkish operating environment. Its ratings are underpinned by state support reflecting the bank's ownership, systemic importance and policy role. Solid Franchise: Ziraat's ownership, history, policy role (as the sole provider of subsidised agricultural loans in Turkey) and large, geographically spread branch network bring certain competitive advantages in terms of the composition and loyalty of the bank's customer and deposit base, access to Turkish lira funding, diversification of revenue, asset quality and performance. Good Asset-Quality Metrics: Non-performing loans (NPLs, loans overdue by 90 days) have consistently outperformed the sector average and watchlist loans have remained manageable, despite rising. Asset-quality...
