8/8/2008

S&P revises Turkey's rating outlook to stable

MarketWatch - Standard & Poor's revised Turkey's credit rating outlook to stable from negative, citing the country's diminished near-term political uncertainties following the July 30 decision of the Constitutional Court not to ban the ruling Justice and Development Party. "The resulting improved prospects for policy continuity and political stability will likely bolster investor confidence, widening the sources for the financing of Turkey's large current account deficit," said Standard & Poor's credit analyst Farouk Soussa in a statement. The ratings agency also affirmed Turkey's BB-/B foreign currency credit ratings. If the government continues to reduce the economy's vulnerability to external financing shocks through continued reform and fiscal consolidation, the ratings on Turkey could improve, S&P said.