1/23/2009

Turkish rating outlook stable, may improve says Moody's

Hurriyet Daily News- Turkey's credit rating outlook is stable, but the rating could improve over time should the economy regain its growth and also momentum towards EU membership, an analyst at ratings agency Moody's said. "An IMF deal is likely to increase confidence that the country has an external financing backstop in these uncertain times. The rating outlook during the 12-18 month time horizon is stable" noted Kristin Lindow, Moody's Lead Sovereign Analyst for Turkey. Turkish officials are currently holding talks with a team from IMF in Ankara on a new loan program to replace the USD 10 billion accord which expired in May. Business leaders and financial markets regard such a deal as key to restoring confidence in the economic outlook. Those concerns and growing risk aversion battered Turkish financial markets last year. "Should the economy regain its growth and EU membership momentum, the rating could improve over time" Lindow said.