Turkey rating could be upgraded if fiscal fundamentals improve
Aug 04, 2011 - 12:00 am GMT+3
by Aug 04, 2011 12:00 am
Turkey's rating could be upgraded if Turkey's fiscal fundamentals improve further, with a fiscal and monetary policy stance that reverses recent growth in internal and external imbalances, including a narrowing in the current account deficit, said Moody's Investors Service on Wednesday.
"Now that Turkey's elections are over, Moody's expects that the policy environment will be relatively dynamic and that the direction of fiscal and monetary policy will be important for the rating trajectory over the next 12 months," the rating agency said in a statement.
Moody's also said the resilience of Turkey's economic and fiscal fundamentals during the global financial crisis has underpinned the positive outlook on the country's Ba2 rating, but a lack of corrective action on domestic and external imbalances could stall positive rating momentum.