Moody’s: Turkey needs to improve resilience for a rating upgrade

Turkey was disappointed when international credit rating agency Moody’s said on Monday 28th January that it would consider raising Turkey to investment grade if the country improved its resilience to external shocks.

The agency made a statement which went “Moody’s would consider upgrading Turkey’s rating, if the government made further progress in lowering its external vulnerabilities by structurally reducing its current account deficit, increasing foreign exchange reserves, or reducing the private sector’s external borrowing”.

In spite of the bright performance of the country to survive a global crisis during the recent years, Moody’s currently rates Turkey at Ba1, one notch below investment grade.

On the contrary however Fitch, another rating agency had upgraded Turkey to the investment level BBB-in November 2012.

Moreover it was also mentioned by Moody’s that the agency predicted Turkey’s economy would grow 3.8 percent in 2013 with an inflation rate of 7 percent and a current account deficit of 7.4 percent of the GDP.

29.01.2013
SOURCE: MEDIA & BTT