Moodys Investors Service has softened its view on the risk of the Turkish government meddling in financial future flow deals, an unambiguous positive for transactions backed by diversified payment rights (DPR) and credit card vouchers (CCV).
But the announcement comes on the heels of the agencys placing the global local currency (GLC) rating of a number of Turkish banks on review for possible downgrade.
The net result is that six DPR programs and a CCV program are under review, direction uncertain.
Stuck in this ambivalent position are Akbank, Turkiye Garanti Bankasi (Garantibank), Turkiye Is Bankasi (Isbank), Turkiye Vakiflar Bankasi (Vakifbank), Yapi Kredi, Denizbank.
Finansbank and HSBC Turkey, two banks untouched by the downgrade review of their peers, saw their future flow programs climb two notches to A3 from Baa2 thanks the more generous assessment of sovereign diversion risk.
The agencys new take on diversion risk enables a DPR or CCV deal to achieve a rating equal the GLC of the originator in question. Both HSBC Turkey and Finansbank have a GLC of A3.