Fitch Assigns BB+ Rating To Romania Garanti Bank; Outlook Stable

“Garanti’s ratings reflect the support that it can expect to receive from its ultimate 100% shareholder, Turkey-based Turkiye Garanti Bankasi A.S.,” Fitch said in a statement.

It said the mother-bank has shown a significant financial and management commitment to its Romanian subsidiary. At the same time, the Romanian unit has a rather significant operational independence from its parent bank and so a “far limited importance for the parent bank’s consolidated balance sheet and performance,” the statement noted.

Garanti relies on its parent for funding, with this comprising 47% of liabilities at the end of the first half. Customer deposits contributed 33% of non-equity funds, but concentrations remain high in deposits. The liquidity position is comfortable.