BURSA, Turkey, March 28 Isbank has
seen its short-term external borrowing costs increase by 30-40
basis points since Turkey's sovereign debt was cut to junk
status, a level that remains "tolerable", the head of Turkey's
largest listed lender said.
Credit ratings agency Moody's in September cut Turkey's
sovereign debt rating to "junk", or non-investment grade, citing
worries about the rule of law after an attempted coup, and risks
from a slowing economy.
Rival agency Fitch Ratings in January followed suit,
depriving Turkey of its sole remaining investment-grade rating
on concerns about politics and monetary policy.
"Since losing the (sovereign) investment grade by both
credit ratings agencies we have seen the impact in our
borrowings," Isbank General Manager Adnan Bali told reporters at
a roundtable interview on the sidelines of an economic summit in
Turkey's northwestern province of Bursa on Saturday.
His comments were embargoed for release on Tuesday.
"We haven't seen too much of a change in long-term
(borrowing). There has been a 30-40 basis points effect in our
short term external borrowings, which at the moment is
tolerable. What's important is the trend from now on."
Isbank is Turkey's largest listed bank by assets.
(Reporting by Nevzat Devranoglu; Writing by David Dolan;
Editing by Humeyra Pamuk)