OREANDA-NEWS. January 19, 2016. Fitch Ratings has placed Finansbank A.S.'s (Finansbank) and its domestic subsidiary Finans Finansal Kiralama A.S.'s, Issuer Default Ratings (IDRs) of 'BBB-' on Rating Watch Positive (RWP). This follows an announcement made by Qatar National Bank (QNB; AA-/ Stable) on 22 December 2015 that it has agreed to buy National Bank of Greece's 99.81% stake in Finansbank. The acquisition is subject to regulatory approvals.

A full list of rating actions is available at the end of this rating action commentary.

KEY RATING DRIVERS - IDRS, SENIOR DEBT RATING, SUPPORT RATING, NATIONAL RATING OF FINANSBANK

The RWP on Finansbank's ratings reflects Fitch's view that once the acquisition is complete, Finansbank will benefit from support from QNB, should this be required. QNB's own support-driven Long-term IDR of 'AA-'/Stable reflects Fitch's opinion of an extremely high probability that the Qatari authorities would support the bank if needed. The government has demonstrated strong commitment to its banks and key public-sector companies and we expect this to continue despite the effects of lower oil prices. Support for QNB, in particular, benefits from its status as the flagship bank in Qatar, its role in the Qatari banking sector and close business links with the state. In addition, the government owns a 50% stake in QNB through the Qatar Investment Authority.

Finansbank's IDRs and National Rating are currently driven by the bank's Viability Rating (VR). Should the acquisition by QNB be concluded, the bank's IDRs would then be driven by support from QNB, reflecting Fitch's view that Finansbank would represent a strategic investment for QNB. QNB is the most internationally diversified Qatari bank, operating in more than 27 countries; its largest subsidiary to date is QNB AlAhli in Egypt.

RATING SENSITIVITIES - IDRS, SENIOR DEBT RATING, SUPPORT RATING, NATIONAL RATING OF FINANSBANK
The RWP on the bank's ratings will be resolved once regulatory approvals for the acquisition is received and ownership changes. Should QNB acquire the 99.81% stake in Finansbank as planned, Fitch's expectation is that Finansbank's foreign currency Long-term IDR would be upgraded to 'BBB', the same level as Turkey's Country Ceiling and its Long-term National Rating would be upgraded to 'AAA(tur)' based on support from QNB.

The bank's Support Rating will likely be revised to '2' from '3' following resolution of the Watch. Fitch expects to withdraw Finansbank's Support Rating Floor (SRF) of 'BB-' following the acquisition of Finansbank by QNB, as institutional support will become the more likely source of external support for the bank. Fitch does not assign SRFs to banks whose IDRs are driven by institutional support.

KEY RATING DRIVERS AND SENSITIVITIES - FINANSBANK SUBSIDIARY
The RWP on the ratings of Finans Finansal Kiralama reflects Fitch's expectation they will continue to be aligned with Finansbank following the expected upgrade of the parent. As Finans Leasing's IDRs are equalised with those of its parent, they are sensitive to changes in Finansbank's IDRs.

The rating actions are as follows:

Finansbank A.S.:
Long-term foreign currency (FC) and local currency (LC) IDRs of 'BBB-' placed on RWP
Short-term FC and LC IDRs of 'F3' placed on RWP
National Long-term rating of 'AA+(tur)' placed on RWP
Support Rating of '3' placed on RWP
Support Rating Floor of' BB-' unaffected
Viability Rating of 'bbb-' unaffected
Senior unsecured debt: 'BBB-', placed on RWP
Finans Finansal Kiralama A.S.:
Long-term FC and LC IDRs of 'BBB-' placed on RWP
Short-term FC and LC IDRs of 'F3' placed on RWP
Support Rating of '2' affirmed
National Long-term rating of 'AA+(tur)' placed on RWP