Government criticises S&P decision to cut Turkeys outlook rating.

By bne IntelliNews May 3, 2012
Several government ministers criticised the decision of Standard and Poors to cut Turkeys rating outlook to stable from positive. Deputy PM Bulent Arinc said that S&Ps decision was unfair and ungrounded and the rating downgrade decision was based on some wrong calculations. Arinc furthered that the central bank and Treasury will demand an explanation from the rating agency. Finance minister Mehmet Simsek commented that despite the ongoing problems in Europe and political turmoil in Turkeys neighbours, Turkey effectively manages its current account problems. Economy minister Zafer Caglayan also joined the criticisms of S&P, saying that the rating agencys assessments were not realistic. Frank Gill from S&P told Bloomberg HT that there was a very slight chance that Turkeys ratings could be upgraded in the next 12 months. Earlier this week S&P cut the rating outlook, arguing that less-buoyant external demand and worsening terms of trade have made economic rebalancing more difficult, and have increased the risks to Turkeys creditworthiness given its high external debt and the state budget's reliance on indirect tax revenues.

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