Istanbul, June 25 () - International rating company Moody's has downgraded the long-term local and foreign currency deposit ratings of HSBC Turkey to Ba1 from Baa2 and Baa3 respectively, with a negative outlook.
"The downgrade of the HSBC Turkey's long-term deposit ratings is due to the reduction in the probability of affiliate support which Moody's incorporates into the bank's rating, following the announcement by HSBC, as part of its group investor presentation in June 2015, that it plans to divest its Turkish operations" the company said in a statement released on Thursday.
The negative outlook in the rating was due to the pressure on the standalone BCA of HSBC Turkey as well as the uncertainty regarding the bank's future ownership, Moody's added. "Currently, there is no upward pressure on the standalone and the long-term deposit ratings, as reflected by the negative outlook."
In case of further evidence of weakening in parental support the deposit rating was likely to be adjusted downwards, it said.