Bulletin: UniCredit?s Exit From Turkey Confirms The Bank?s Derisking Strategy

MILAN (S&P Global Ratings) Nov. 9, 2021--S&P Global Ratings today said that Italian bank UniCredit SpA's announcement to dispose of the remaining 20% stake in Yapi ve Kredi Bankasi A.S. is the last step of its decision to exit Turkey, which it initiated in 2019. We think that the divestment decision is coherent with UniCredit's derisking strategy and its plan to focus on core business and markets. We expect this decision to have a negligible impact on the bank's capitalization. However, it further reduces downside risks associated with its exposure to Turkey given the challenging economic and operating conditions, as well as the strong volatility of the Turkish Lira, which has lost about a quarter of its value since the

...November 9, 2021 MILAN (S&P Global Ratings) Nov. 9, 2021--S&P Global Ratings today said that Italian bank UniCredit SpA's announcement to dispose of the remaining 20% stake in Yapi ve Kredi Bankasi A.S. is the last step of its decision to exit Turkey, which it initiated in 2019. We think that the divestment decision is coherent with UniCredit's derisking strategy and its plan to focus on core business and markets. We expect this decision to have a negligible impact on the bank's capitalization. However, it further reduces downside risks associated with its exposure to Turkey given the challenging economic and operating conditions, as well as the strong volatility of the Turkish Lira, which has lost about a quarter of its value since the beginning of the year. We acknowledge that UniCredit still holds about $855 million in subordinated debt issued by Yapi, which will expire in 2023....

Bulletin