Moody’s says Turkey’s outlook stable
Posted by meb at March 2nd, 2007
International credit rating agency Moody’s said on Thursday its outlook on Turkey is stable and its country rating Ba3 reflects the elasticity of Turkish economy against financial and political shocks as a result of budget performance, financial stability and floating exchange rate.
Turkish economy had a significant and positive transformation thanks to its resolute policy reforms in past six years, said Kristin Lindow, a Moody’s analyst who wrote a report on Turkey.
Reminding that global fluctuations in May-June 2006 had a negative impact on Turkey, Lindow said high capital inflow towards Turkey met the country’s external financial needs.
Lindow said upward tendency of prices in Turkey and its negative impact on inflation targeting caused new concerns, noting that IMF program and negotiations with the EU had negative aspects in recent months as well.
Stating that Turkey will hold presidential and general elections in 2007, Lindow said Turkey may face new possible financial fluctuations this year because of political uncertainty, however, this situation would not threaten Turkey’s credit rating.
source: The New Anatolian
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