Fitch affirms Turkey’s credit rating at BBB-, and a stable future

الاستثمار في تركيا, الاستثمارات الاجنبية في تركيا سنة 2015
Foreign investment in Turkey rose by 32% in 2015
22 February 2016
Maslak Grand Towers
1 March 2016

Fitch affirms Turkey’s credit rating at BBB-, and a stable future

فيتش تبقى على تصنيفها لتركيا عند مستوى -BBB ونظرة مستقبلية مستقرة

Fitch affirms Turkey's credit rating at BBB-, and a stable future

Fitch affirms Turkey's credit rating at BBB-, and a stable future
Fitch Ratings affirmed Turkey's sovereign rating at BBB-, the lowest investment grade rating, with a stable outlook on Friday, noting that fiscal discipline remained in place in 2015 despite two parliamentary elections.

However Fitch said the "geopolitical scene" had worsened, pointing to the crisis in neighboring Syria, several fatal terror attacks and tensions between Turkey and Russia may affect the country's economy in a negative way.

"Elections in November resulting in another term for the AK Party have eased domestic political uncertainty, although the prospect of constitutional reform in order to strengthen the powers of the presidency means that some uncertainties linger," it said.

The implementation of pre-election spending commitments was expected to worsen the fiscal position in 2016, with the central government deficit seen widening to 2 percent of the GDP, it said.

Turkey's lira weakened nearly 2.5 percent to 3.0 against the dollar on Friday ahead of the ratings review and as upbeat U.S. economic data helped bolster the U.S. currency. After the Fitch statement, it stood at 2.9984.

Fitch said it assumed that pressure from recent currency depreciation and a minimum wage hike would push inflation into double digits during 2016.

On a more positive note, Fitch noted that Turkey's reliance on short-term borrowing has declined due to macro-prudential policy, and added that Turkish banks have sufficient sources of foreign exchange liquidity against financial shocks.

Although foreign exchange reserves fell by $12.5 billion last year, they were still high at $115.1 billion at the end of 2015.

"Growth is comfortably in excess of peers, averaging 4.4 percent over 2011-2015. Fitch forecasts a slight moderation in growth, to around 3.5 percent in 2016 and 2017, and growth will be consumption-driven, reflecting the hike in the minimum wage, lower oil prices and a fairly loose policy stance," Fitch said.

"Inflation and inflation volatility are well in excess of peers ... the banking system is consistent with Turkey's investment grade rating, with a 'bbb', and banks are well regulated and profitable," the agency concluded.

Daily Sabah Turkey
شركة آراس العقارية تقدم لكم أفضل العروض في تركيا.
لدينا أنواع مختلفة من العقارات تتناسب مع رغباتكم , واذا لم تجد في موقعنا ما تبحث عنه اتصل بنا وسوف نوفر لك العقار حسب طلباتك.
لدينا افضل العروض: عقارات في تركيا ، شقق للبيع في تركيا ، فيلا للبيع في تركيا ، اراضي للبيع في تركيا ، الاستثمار في تركيا ، الاقامة في تركيا ، شحن البضائع من تركيا ، التسويق في تركيا ...
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