Turkey’s credit rating upgraded to investment grade by Moody’s
It was announced by Deputy Prime Minister Ali Babacan that Moody’s had upgraded Turkey’s credit rating to investment grade, yesterday.
First comments came from Ali Babacan and Economy Minister Zafer Çağlayan who expressed this move was long due.
Turkey raised hopes again to attract more foreign funds when Moody’s raised Turkey’s long-term credit rating by one notch to “Baa3,” the bottom of investment grade ratings yesterday.
Turkish Deputy Prime Minister Ali Babacan made a strong comment saying Moody’s decision had come less than two months after Standard & Poor’s credit rating increase and the move was accurate but belated.
He went on to say; “Thanks to the steps undertaken in the economy in the right direction, the market indicators were at the same level with the countries that already have investment grade ratings. The decision brought our credit rating closer to the market indicators.”
The Moody’s said in its announcement, “
Praising Turkey’s improved “economic and fiscal metrics”, the Moody’s noted: “Since the beginning of 2009, Turkey’s debt burden has fallen by 10 percentage points to a manageable 36 percent of GDP, and Moody’s expects this decline to continue in the coming years.”
Moody’s also added it expected Turkey’s ability to finance its debt to strengthen as the proportion that is denominated in foreign currency drops, noting a decline in the measure from 46.3 percent in 2003 to 27.4 percent in 2012.
