Turkey’s Sovereign Ratings Affirmed
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Summary
Ref: TR21CRA00-01 2 1 May 20 2 1
Turkey’s Sovereign Ratings Affirmed
Rating Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Turkey’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘B+’ . At the same time, CI Ratings has affirmed the Sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook for the ratings remains Stable.
Rating Rationale
The affirmation of the ratings reflects CI’s expectation that although Turkey’s short-term economic growth outlook is currently improving due to rising exports, external vulnerabilities will remain high over the forecast horizon. In this regard, CI views the future path of monetary policy as an important driver for the sovereign’s credit profile given that a sharp loosening of the policy stance would aggravate already large…