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Fitch revises Burgan Bank Turkey's outlook to negative

Fitch revises Burgan Bank Turkey's outlook to negative
The lender’s LTFC IDR has been affirmed at 'B+'
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Mubasher: Fitch Ratings has revised the outlook on the long-term foreign-currency issuer default ratings (LTFC IDRs) of nine Turkish foreign-owned banks, including Burgan Bank Turkey, to negative from stable.

The lender’s LTFC IDR has been affirmed at 'B+', Burgan Bank said in a statement to Boursa Kuwait on Wednesday.

In addition, the bank’s long-term local-currency issuer default rating (LTLC IDR) has been affirmed at 'BB-'.

The rating “reflect[s] Fitch's view that the weakening of Turkey's external finances is increasing the risk of government intervention in the banking sector, which could impede the ability of all banks in the sector to service their foreign currency obligations,” the international credit rating agency said.

It is noteworthy to mention that in 2019, Burgan Bank’s net profits rose by 3% to KWD 84.7 million.