...Support Drives IDRs: Turkiye Garanti Bankasi A.S.'s ratings are driven by support from its controlling shareholder, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA, A-/Stable). They consider Garanti's strategic importance to its parent, indicated by the increase in BBVA's stake in the bank in 1Q17 and Garanti's increased integration. Fitch Ratings' view of support also considers BBVA's management control of Garanti and its consolidation into BBVA's financial statements. Garanti's Foreign-Currency IDR is constrained by Turkey's Country Ceiling. Solid Franchise: Garanti is a leading Turkish bank (around 11% share of sector assets) and its strong franchise underpins a steady level of income generation and earnings stability. Asset-Quality Pressures: Non-performing loans (NPLs; loans overdue by 90 days) outperform the sector average (end-3Q17: 2.7% of gross loans; sector: 3.0%) but risks remain given the high proportion of watch-list loans (4.8%), many of which have been restructured, high single-name...
