...Support Driven IDRs: The Issuer Default Ratings (IDRs) and National Rating of Turk Ekonomi Bankasi A.S. (TEB) are driven by potential support from its majority shareholder, BNP Paribas (BNPP, A+/Stable). This view of support is based on TEB's majority ownership (ultimate 72.3% stake held by BNPP), strategic importance, integration and its record to date. Country Ceiling Constraint: TEB's Long-Term IDR is capped by Turkey's `BBB' Country Ceiling while the local-currency IDR also takes into account country risks. The VR considers TEB's exposure to the volatile Turkish operating environment. Modest Franchise: TEB is a second-tier Turkish bank with limited pricing power. At end-2015, it had a 3.2% share of sector assets. Reasonable Asset Quality: TEB's non-performing loan (NPL) ratio has consistently outperformed peers' despite its exposure to the risky SME sector (48% of gross loans). This reflects its moderate risk appetite and robust underwriting standards. NPLs rose modestly to 2.2% in...
