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Standalone Strength Drives Ratings: Odea Bank A.S.’s Long-Term Issuer Default Ratings are driven by its Viability Rating, reflecting its limited franchise, high asset-quality risks and weak profitability, but also a reasonable funding profile and limited reliance on wholesale funding. The Negative Outlook reflects the potential for further weakening in the bank’s financial metrics given operating environment risks and its weakened credit risk profile, including due to significant exposure to the troubled real-estate sector. Lebanese Parent, Limited Contagion Risk: Odea is 76% owned by Bank Audi S.A.L. whose ratings were affirmed at ‘RD’ and withdrawn in January 2020 after the Banque du Liban introduced restrictions on banks’ operations in foreign currency. ���������ֳ� sees limited contagion risk for Odea from its parent given it has no exposure to Lebanon, has paid no dividends to date and considering the strong Turkish regulator, which ���������ֳ� believes would seek to limit transfers of capital and liquidity to the parent. Limited Franchise, Corporate Focus: Odea has a limited franchise with less than a 1% market share of sector assets. It has been deleveraging since 2017 in response to rising asset-quality problems. It provides banking services to corporate, commercial, SME and retail customers in Turkey, with most loans being extended to the corporate and commercial segments.