...VR, Shareholder Support Drive IDRs: Turk Ekonomi Bankasi A.S.'s (TEB) Issuer Default Ratings (IDRs) are driven by its intrinsic strength, as reflected in the `bb-' Viability Rating (VR). The VR considers concentration in the challenging Turkish operating environment, resilient profitability despite the bank's modest franchise, moderate core capitalisation, asset quality above the peer average, and ordinary funding support from its shareholder. The bank's IDRs are also underpinned by potential extraordinary support from BNP Paribas S.A. (BNPP; AA-/Stable), as reflected in its `bb-' Shareholder Support Rating (SSR). The Stable Outlooks mirror those on the sovereign and the operating environment. Iran Conflict Increases Challenges: Fitch Ratings believes macro-financial stability risks and external financing pressures have risen following the outbreak of the US-Iran war. This has dampened the country's monetary policy normalisation and strengthening record. A prolonged conflict would most...
