New rating plan will not affect Turkish banks: Moodys
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Revisions are not expected to affect the Turkish banks since new methodology was introduced to access effects of large scale financial resolution programs developed in Europe.
A planned revision in the rating methodology of banks will not change Turkish banks' ratings, a senior economist from Moodys said on Saturday.
Mark LaMonte, Managing Director and Chief Credit Officer for Moody's Global Financial Institutions, said "Loss Given Failure" analysis was added to the revision to determine how each type of creditor is likely to be affected when a bank needs to be "resolved." This analysis is an additional indicator for markets that have a development plan through the European Banking Union against the economic crisis.
As Turkey is not included in this category, it is not expected to be affected with the new methodology.
Revisions will not affect Turkish Banks. Turkey would be in the MEA (Middle East and Africa) line rather than the Europe line, LaMonte added.
Recently, Moodys announced that they would revise the methodology of credit ratings calculation in light of the last financial crisis and the experiences gained from it.
We certainly took on board the lessons learned during the 2007-2009 financial crises in developing this methodology, so in that respect I hope it will be helpful in turning our calibrations of our ratings, Lamonte said.
He stressed that these revisions will have the largest impact on ratings of European and American Banks, and noted they will come into force from the first half of 2015.
Mark LaMonte, Managing Director and Chief Credit Officer for Moody's Global Financial Institutions, said "Loss Given Failure" analysis was added to the revision to determine how each type of creditor is likely to be affected when a bank needs to be "resolved." This analysis is an additional indicator for markets that have a development plan through the European Banking Union against the economic crisis.
As Turkey is not included in this category, it is not expected to be affected with the new methodology.
Revisions will not affect Turkish Banks. Turkey would be in the MEA (Middle East and Africa) line rather than the Europe line, LaMonte added.
Recently, Moodys announced that they would revise the methodology of credit ratings calculation in light of the last financial crisis and the experiences gained from it.
We certainly took on board the lessons learned during the 2007-2009 financial crises in developing this methodology, so in that respect I hope it will be helpful in turning our calibrations of our ratings, Lamonte said.
He stressed that these revisions will have the largest impact on ratings of European and American Banks, and noted they will come into force from the first half of 2015.
