...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) and consider Garanti's high importance for BBVA. They also consider BBVA's management control of Garanti, despite only having a 39.9% stake, and Garanti's consolidation into BBVA's financial statements. However, Garanti is notched twice from BBVA, reflecting BBVA's ability to provide support (due to Garanti's relative size), the relatively recent acquisition and Garanti's operational independence. Negative Outlook: The Negative Outlook on Garanti's IDRs reflects the increased likelihood of a downgrade of the Country Ceiling given the Negative Outlook on Turkey's sovereign rating. Asset Quality, Downside Risks: Non-performing loans (NPLs), defined as loans overdue by 90 days, were 3.0% at end-1H16, broadly flat from end-2015. NPLs could rise given high and long-term foreign-currency lending ¡ which is likely to be only partly hedged in Fitch's...
