...Support-Driven IDRs: Turkiye Garanti Bankasi A.S.'s (Garanti) ratings are driven by support from Banco Bilbao Viczaya Argentaria S.A (BBVA, A-/Stable). This considers its control of the bank and Garanti's high strategic importance for the BBVA group. BBVA gained management control of Garanti following the increase in its stake in July 2015, when it acquired a majority of seats on the board and Garanti became consolidated in its accounts. Turkish Challenges Weigh: Downside risks for the VR have increased in light of short-term political uncertainty, potential disruption to economic policy, lira and interest rate volatility and weaker growth. Fitch Ratings' base case is that any moderate deterioration in the operating environment should be manageable for the bank in light of its financial profile and franchise. Sound Loss Absorption Capacity: Capitalisation is reasonable, supported by acceptable reserve coverage of impaired loans (end-1H15: 76%) and solid internal capital generation. Pre-...
