...Institutional Support Drives Ratings: Turk Ekonomi Bankasi A.S.'s (TEB) Issuer Default Ratings (IDRs) are driven by potential support from its ultimate controlling shareholder, BNP Paribas (BNPP) (A+/Stable). BNPP has a 50% stake in TEB Holding, which has 55% of the voting rights in TEB, and an additional 44.8% stake in TEB directly. Fitch Ratings' view of support is based on TEB's strategic importance to its parent. Country Ceiling Constraint: TEB's Long-Term Foreign-Currency IDR is constrained by Turkey's `BBB-' Country Ceiling. Its `BBB-' Local-Currency IDR also takes into account Turkish country risks. Moderate Franchise: TEB is a medium-sized bank with market shares of 3%-3.5% of assets, deposits and loans at end-2016 resulting in limited competitive advantages. Asset Quality Weakening: TEB has typically reported below-sector-average non-performing loans (NPLs, overdue by 90 days) despite its SME focus, underpinned by robust loan underwriting and monitoring functions. However, asset...
