ISTANBUL

International credit rating agency Fitch Ratings on Monday upgraded the long-term foreign currency issuer default ratings of Ziraat Bank, VakifBank, the Industrial Development Bank of Türkiye (TSKB), Halkbank, Emlak Participation Bank and Vakif Participation Bank.

Fitch said in a statement that it raised the long-term foreign currency issuer default ratings of Ziraat Bank, VakifBank and TSKB from "B+" to "BB-."

The agency also noted that the viability ratings of these banks were upgraded from "b+" to "bb-" and that their long-term local currency issuer default ratings were confirmed at "BB-" and their national long-term ratings at "AA(tur)."

The statement noted that the outlooks of these banks were set at "stable."

It also said that Arap Turk Bank's (ATB) long-term issuer default rating was upgraded from B to B+, its viability rating from b to b+, and its national long-term rating from A-(tur) to A(tur), with a stable outlook.

"The upgrades reflect Fitch's improved assessment of the Turkish operating environment, as shown by the recent revision of the operating environment score for Turkish banks to 'bb-'/stable from 'b+'/positive. The upgrades also consider the banks' stable business and financial profiles maintained in the context of improved operating conditions," Fitch said in the statement.

It also noted that the government support ratings of Ziraat Bank, VakifBank and TSKB were upgraded from b+ to bb-, reflecting Turkish authorities' assessment that the ability to support the banking sector in foreign currency has increased following the improvement in foreign exchange reserves.

Meanwhile, Fitch also announced in a separate statement that the long-term foreign currency issuer default ratings of Halkbank, Emlak Participation Bank and Vakif Participation Bank were upgraded from B+ to BB-.

It said the outlook for these ratings was "stable" and that the government support ratings of these banks were also upgraded from b+ to bb-.

The statement also noted that the government support ratings of Türkiye Is Bankasi, Akbank and Yapi Kredi were upgraded from b- to b.