S&P says Turkish economy could be set for hard landing
Jul 28, 2011 - 12:00 am GMT+3
by Jul 28, 2011 12:00 am
Turkey's economy could be heading for a hard landing and Standard & Poors is watching for measures taken to prevent overheating, Frank Gill, an analyst at the credit ratings agency said on Wednesday.
Gill said there was no risk of a systemic shock to the Turkish economy thanks to the currency regime. Turkey operates a floating exchange rate, unlike during the 2000/01 crisis when a fixed exchange rate system existed.
Gill also said he saw an improvement in Turkey's public debt position.
He also said it was difficult to anticipate Turkey's future credit rating. S&P rates Turkey two notches below investment grade, and holds a positive outlook.