... ve Kredi Bankasi A.S's (YKB) Long-Term Foreign-Currency (LT FC) Issuer Default Rating (IDR) reflects the concentration of the bank's operations in the high-risk Turkish operating environment, balanced by its adequate capital and FC liquidity buffers. Negative Outlook: The Negative Outlook reflects increased risks to the bank's Standalone Credit Profile as a result of the economic downturn and financial market volatility, which heighten pressure on its asset quality, capitalisation, performance, funding and liquidity. Regulatory forbearance will support the bank's reported financial metrics in the short term. Asset Quality to Deteriorate: We expect underlying asset quality to weaken given YKB's high, albeit declining, FC lending (end-1Q20: 42% of total loans), unsecured retail loans (18%), SME exposures and Stage 2 loans (14%, 59% restructured). Exposure to the energy (12%), construction (8%) and tourism (3%) sectors is also a source of risk....
