S&P leaves Turkey’s rating unchanged

Credit rating agency Standard & Poor’s affirms Turkey’s long term foreign currency sovereign credit rating at BB+ with negative outlook

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Standard and Poor’s (S&P) keeps Turkey’s foreign currency sovereign credit ratings at BB+ while maintaining the country's negative outlook on Friday

The credit rating agency said “government’s relatively low public debt levels and resilient exports,” contributed to the decision to keep the rates unchanged.

Turkish Statistical Institute has announced industrial production increased by 4.7 percent in March exceeding the market expectations of 1.7 percent reflecting the country's growth prospects.  

The agency, however, lowered Turkey’s long- and short-term local currency sovereign credit ratings to BBB- from BBB citing “challenges to the operational independence of Turkey's central bank.”

S&P kept outlook on both foreign and domestic credit ratings as negative citing “uncertain growth prospects against a backdrop of high net external debt levels, and longstanding pressures on institutional checks and balances.”

The agency said it could change the outlook “to stable if economic growth continued to rebalance and depended less heavily on external borrowing.”

TRTWorld and agencies