12/4/2009

Fitch upgrades Turkey two notches due to resilience to crisis

Reuters - Ratings agency Fitch on Thursday upgraded Turkey's long-term foreign currency Issuer Default Rating (IDR) two notches to 'BB+' from 'BB-' due to its resilience to the crisis and the easing of earlier restraints such as inflation. Fitch added Turkey has shown that its credit fundamentals and debt tolerance are stronger than previously thought. "The upgrade reflects Turkey's relative resilience to the severe stress test of the global financial crisis and some easing in prior acute constraints related to inflation, external finances and political risk", says Edward Parker, Head of Emerging Europe in Fitch's Sovereigns team. "In contrast to previous shocks, Turkey has been able to implement counter-cyclical fiscal and monetary policies without sparking an exchange rate crisis, and interest rates have fallen to single digits for the first time in its modern history", Fitch added.