...Support Drives Ratings: Yapi ve Kredi Bankasi A.S.'s (YKB) Issuer Default Ratings (IDRs) are driven by support from UniCredit S.p.A. (UC, BBB+/Negative). YKB is jointly owned by UC and local conglomerate Koc Group. Fitch Ratings considers YKB to be a strategically important and highly integrated subsidiary of UC. The Negative Outlook on YKB reflects that on UC and any potential weakening of support. VR Reflects Reasonable Financial Metrics: YKB's Viability Rating (VR) reflects its reasonable financial metrics in terms of performance and capitalisation. The rating also considers the bank's strong franchise, which Fitch believes would make any moderate deterioration in the operating environment manageable, but challenges remain given slowing GDP growth, and potential further interest-rate and currency volatility. Deterioration in Asset Quality: Non-performing loans (NPLs), defined as loans overdue by 90 days, amounted to 4.4% of the bank's gross loans at end-9M16. Watch-list loans rose sharply...
