...Viability Rating Drives IDRs: Turkiye Garanti Bankasi A.S.'s (Garanti) Issuer Default Ratings (IDR) are driven by the bank's intrinsic financial strength, reflected in its Viability Rating (VR). One of Turkey's top private-sector banks, Garanti operates in all segments. High-margin consumer (35% of 1Q14 loans) and SME lending have underpinned strong recent growth. It is an efficient and profitable bank, with a good franchise (12% deposit share). Risk measurement tools are well developed and management teams are experienced. Dogus/BBVA Strategic Shareholders: Dogus Group, a leading Turkish conglomerate, holds a 24.2% stake in the bank and Banco Bilbao Vizcaya Argentaria (BBVA; A-/Stable) controls 25.01%. These strategic partners are equally represented on Garanti's board. Loan Quality Holding Up: Loan quality has held up well to date, but Turkish banks have grown their lending operations rapidly over recent years and portfolios are not fully seasoned. The current market volatility will test...
