Moody's upgrades Turkey's rating to investment grade
Credit rating agency Moody's has upgraded Turkey's rating by one notch to Baa3 from Ba1, and has assigned a stable outlook.
Moody's showed the reason of upgrading Turkey's rating as «recent and expected future improvements in key economic and public finance metrics.»
Moody's also said that «Progress on structural and institutional reforms that Moody's expects will reduce existing vulnerabilities to shocks to international capital flows over time» for the second key driver for the rating action.
«Moody's decision to assign a stable outlook on Turkey's ratings reflects the rating agency's expectation of continued prudence in the management of public finances and sustained momentum behind current structural and institutional reforms» was said in the statement.
Turkish Deputy Prime Minister Ali Babacan said the country's rating was upgraded to the level of investment by Moody's after Fitch.
«This decision is correct as well as a belated. The decision has closed up the market indicators and the credit rating a bit more» said Babacan.
Turkish Economy Minister Zafer Caglayan said, «We expect greater investments. The Central Bank should be prepared against the pressures it (the decision) will have on the Turkish lira.»
Turkish Finance Minister Mehmet Simsek said Moody's upgrading would increase the Treasury's and the companies' access to the international finance, reduce the burden of debt and help Turkey's long-term growth.
Adapted from Worldbulletin