Fitch upgrades Turkey's local currency rating to BB

Fitch Ratings upgraded Turkey's Long-term local currency Issuer Default ratings (IDR) to 'BB', on Wednesday.

Fitch upgrades Turkey's local currency rating to BB
Fitch Ratings, a global rating agency, announced in a press release issued that it has upgraded Turkey's IDR to 'BB', with a Stable Outlook from 'BB-' (BB minus). At the same time, it affirmed Turkey's Long-term foreign currency IDR at 'BB-' (BB minus) with Stable Outlook, Short-term foreign currency IDR at 'B' and Country Ceiling at 'BB'.

"The local currency upgrade reflects secular improvements in the public finances, income levels and the structure of the economy, as well as some easing in political risks since the summer," said Edward Parker, Head of Emerging Europe sovereigns at Fitch.

"However, the country's sizeable external financing requirement currently constrains its foreign currency rating against the backdrop of a more challenging global financial environment."

According to Fitch, Turkey's real GDP growth will be 4.3 percent and GDP per capita will reach 6,615 USD in 2007.

Fitch also made some political comments on Turkey and said, "since its re-election in July the Justice and Development Party (AKP) government has made a slow start to its structural reform agenda. Nonetheless, the agency expects some progress in areas such as social security, the energy sector and privatisation."

Fitch said it viewed political risk as a material factor weighing on Turkey's ratings and noted that planned changes to the constitution could stir up tensions. Fitch pointed out that there was a risk that Turkey could become embroiled in a military conflict in northern Iraq.

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Güncelleme Tarihi: 12 Aralık 2007, 14:56
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