Standard & Poor’s upgrades Turkey’s credit rating from BB to BB+

Turkey has received long awaited good news from Standard & Poor’s that has raised the country’s credit rating from BB to BB+.

Standard Poor said in its statement that Turkey was in the process of rebalancing its economy and the floating rate policy, the prudential limit on foreign loans and the deepening of the local capital market induced higher resistance to potential capital flows.

The agency also referred to the initiatives taken by government on the way to solution of the Kurdish issue and said this would have a positive effect on Turkey’s rating. The reason for the upgrade the agency said was that a progress to be made on the Kurdish issue would lead to a decline in security-related spending and highly contribute to the border trade in Turkey.

This positive move from the leading agency was found encouraging by Finance Minister Mehmet Şimşek who commented Turkey deserved even better. Şimşek also said the new rating would make it easier for Turkish companies to access funds.

28.03.2012
SOURCE: MEDIA