Japanese agency raises Turkey's rating to 'investment grade'

The JCR upgrade follows Moody's upward revision on Turkey's ratings

Japanese agency raises Turkey's rating to 'investment grade'

World Bulletin/News Desk

Japan Credit Rating Agency (JCR) on Thursday raised Turkey's credit rating two notches to investment grade to follow suit with its American and European counterparts.      

JCR raised Turkey's Foreign Currency Long-Term Issuer Rating to BBB- from BB and confirmed the country's outlook at stable.      

Fitch in November 2012 and Moody's just last week raised Turkey to investment grade.      

"Turkey has successfully weathered challenges of highly adverse international economic environment from the Lehman Shock through the European sovereign debt crisis. Increased net export and lowered unemployment rate in 2012 suggest strength of its growth potential, despite dropped GDP growth rate itself. The level of national income has always been far greater than those of Asian emerging economies," JCR said in a statement.      

"There remains concern over inflation, current account deficit and weak foreign exchange reserves. It is also a long way to go for planned raising of the saving rate and lowering of the import dependency of energy. However, improvement on the macroeconomic issues is significant in the latest years thanks to innovative policy measures taken. So are some concrete steps for the structural issues, albeit small. The country's foreign exchange liquidity risk itself is decreasing as the European debt crisis is finding its way out. Hence, JCR upgraded Turkey's long-term issuer ratings to BBB-. The outlook of the rating is stable," the agency said.      

Turkey's foregin trade minister, Zafer Caglayan, hailed the JCR revision, saying the move would open the way for boosted foreign investments in the country.      

"The structural reforms we made, our strong fiscal and monetary policies and macro-cautionary measures helped us weather the global crisis. Recent rating upgrades by three international credit rating agencies show our performance in economic growth and employment," Deputy Prime Minister Ali Babacan said in a statement.      

Fitch in November 2012 and Moody's only last week raised Turkey investment grade.

Güncelleme Tarihi: 23 Mayıs 2013, 16:29

Muhammed Öylek