Fitch raises Turkeys sovereign rating two notches.

By bne IntelliNews December 4, 2009
Fitch Ratings upgraded Turkey s long-term foreign currency Issuer Default Rating (IDR) to BB+ from BB-. The countrys long-term local currency IDR was also raised to BB+ from BB and the country ceiling to BBB- from BB. The statement by Fitch notes that the agency removed all these ratings from Rating Watch Positive and assigned Stable Outlooks to the Long-term IDRs while it affirmed the countrys short-term foreign currency IDR at B. Fitch says that the upgrade reflects Turkey s relative resilience to the severe stress test of the global financial crisis and some easing in prior acute constraints related to inflation, external finance and political risk. The agency expects Turkey s GDP to contract 6% this year but forecasts 4% growth in 2010. Meanwhile, Moodys says that a two-notch upgrade does not seem possible. Kristin Lindow from Moodys told Reuters that still there are risks related to finances and politics and suggests that an upgrade could be possible within 18-24 months following a change in outlook. Moodys changed the sovereign rating outlook to positive from stable in September.

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