Economists expect Moody's to make no changes to Turkey's credit rating and negative outlook on Friday. U.S.-based credit rating agency Moody's, which lifted Turkey's credit rating to investment grade, will conduct its second review on Friday. The agency postponed its evaluation of Turkey for the third time by not updating the country's credit rating on April 10, although it was written on its evaluation calendar.Moody's Investors Service, which made its latest revision for Turkey on April 11, 2014, changed the outlook on Turkey's Baa3 government bond rating to negative from stable. Concurrently, it affirmed Turkey's Baa3 rating and investment grade at their current levels.The agency made an announcement on June 10 and drew attention to the fact that the election results might increase the possibility of political instability. It is expected that Moody's will make this year's final evaluation meeting for Turkey on Dec. 4.Nilüfer Sezgin, chief economist at Erste Securities Istanbul, said Moody's - which emphasized that political developments pose risks to Turkey's credit rating - can either affirm Turkey's credit rating and negative outlook at their current levels or postpone its evaluation without making any announcement on Friday. Stressing that deepening uncertainties and geopolitical developments increase the pressure on credit rating, Sezgin said those developments increase the risk that Moody's might downgrade Turkey's credit rating in the upcoming meetings if not in the meeting on Friday."A performance hanging up around 3 percent in terms of growth dynamics in the recent years is not exciting for credit rating," Sezgin said, adding: "It seems that reaching political stability and making progress in economic reforms are absolutely necessary for Turkey to protect its investment grade at its current level or upgrade it. Moreover, the External Vulnerability Index that Moody's follows closely pushes credit rating agencies to be extra cautious in stressful and uncertain periods because of the low reserves. Turkey gets poor marks in this field compared to the other countries that have similar credit ratings." Bora Tamer Yılmaz, an economist at Ziraat Investment, said Moody's can skip this week, as the principal determinant of the asset prices in Turkey has been the country's risk premium in the recent period. Stating that the risk premium is priced in accordance with domestic, political and geopolitical developments, Yılmaz stressed that there have been no triggering developments on either side."Establishing a new government at home, creating a security zone in Syria and cooperating with NATO forces abroad might seem like triggering developments, Yılmaz said, adding: "Moody's might prefer not to make any evaluations about Turkey's credit rating without seeing any concrete developments. Right now, the most powerful issue in Turkey is that the Central Bank of the Republic of Turkey [CBRT] announced it would normalize its monetary policy framework together with the [U.S.] Federal Reserve." Yılmaz also stressed that Turkey is one of the best countries in the world in terms of public finance. "Turkey has managed to take supportive steps towards the domestic demand without disrupting debt indicators. For example, while the unemployment rate decreases to single-digit figures thanks to the stimulus packages announced to increase employment, domestic demand protects its dynamism. Positive balance sheets announced by banks in the second quarter indicate the strength of the sector. Inflation showing a falling tendency is also one of the factors that supports Turkey," Yılmaz highlighted.Wolf-Fabian Hungerland, an economist working on the Turkish economy at the Germany-based financial institution Berenberg, said the principal question a credit rating agency asks is what is a particular country's debt discharging capacity compared to the other countries located in the same group. He emphasized that Turkey's economic growth has seriously slowed down while political uncertainties have increased. Underscoring that Turkey's public debt and borrowing requirements were relatively low in the report published by Moody's in June compared to many countries with a Baa3 rating, Hungerland said they expected Moody's to affirm Turkey's credit rating at its current level on Friday.