RATINGS RATIONALE

YapiKredi's provisional subordinated debt rating is positioned one notch below the bank's baa3 adjusted standalone credit assessment, and does not incorporate any rating uplift from systemic (government) support. The bank's adjusted standalone credit assessment is one notch higher than its ba1 standalone credit assessment, and incorporates one notch of rating uplift. The uplift reflects Moody's assumption of a moderate probability of support from UniCredit SpA (Baa2, deposits, negative; BFSR C-/BCA baa2, negative), which holds a 40.9% stake in YapiKredi.

The negative outlook on the subordinated debt rating, reflects the negative outlook on UniCredit's C- BFSR, the reference point and input for imputed parental support, according to our Joint Default Analysis (JDA).

Moody's believes that at present, there is a strong prudential bank-supervisory framework in Turkey. The regulator has extensive intervention tools available to preserve a bank's solvency and financial stability within the banking system, although within Turkey, imposing losses on bank creditors outside of a liquidation scenario is untested. However, if future regulatory intervention is required to support Turkish banks, Moody's believes that the Turkish frameworks for bank resolution could develop further, similar to the policy initiatives in numerous banking systems, particularly in Europe.

These frameworks provide for burden sharing of bank bailouts with bank creditors, in particular affecting junior classes of bank securities. As a result, YapiKredi's subordinated debt rating does not incorporate any uplift from systemic support (For more detail, please refer to Moody's special comment entitled "Supported Bank Debt Ratings at Risk of Downgrade Due to New Approaches to Bank Resolution", 14 February 2011).

WHAT COULD MOVE THE RATING UP/DOWN

Currently, there is no upwards pressure on the subordinated debt rating, reflected by the negative outlook. As the subordinated debt rating is notched off the bank's adjusted standalone credit assessment, any weakening of the bank's standalone credit strength and/or that of its parent Unicredit will result in a similar rating action on the subordinated debt.

PRINCIPAL METHODOLGIES

The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

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Arif K Bekiroglu Asst Vice President - Analyst Financial Institutions Group Moody'sDeutschland GmbH An der Welle 5 Frankfurt am Main 60322 Germany JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Carola Schuler MD - Banking Financial Institutions Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Releasing Office: Moody's Deutschland GmbH An der Welle 5 Frankfurt am Main 60322 Germany JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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