US ratings agency Standard & Poor's (S&P) put its foreign currency debt ratings for Turkey on CreditWatch with negative implications on 18 July. The agency said the move reflected continuing adverse fiscal trends and rising debt service pressures, which could lead to a downgrade if they remained unchecked. S&P's current rating is B+ for long-term and B for short-term foreign currency debt.
S&P added that CreditWatch status should be clarified over the next few months, as the new government establishes its economic policies. A senior S&P official subsequently said that the new government needed to implement structural reforms rapidly, such as streamlining the social security system, and privatisation.
S&P has also placed on CreditWatch with negative implications the B+ long-term foreign currency debt ratings of state Ziraat Bankasi (Agricultural Bank), the private sector Garanti Bankasi, and Ankara municipality.
Another US credit ratings agency, Duff & Phelps, reaffirmed its BB+ rating on 19 July.
Despite retaining its rating unchanged, the agency stressed the need for structural reforms and prescribed an acceleration in privatisation, an increase in tax revenues, a reduction in agricultural subsidies, and the creation of more employment opportunities.
You might also like...
UAE rides high on non-oil boom
26 April 2024
Qiddiya evaluates multipurpose stadium bids
26 April 2024
Al Ula seeks equestrian village interest
26 April 2024
Morocco seeks firms for 400MW wind schemes
26 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.