Moodys maintains its previous views about Turkey and rating action.

By bne IntelliNews November 15, 2012
Moodys still maintains its views on Turkey as expressed in a statement issued on October 30, a spokesperson from the rating agency told the local TV channel CNBC-e. In the statement released in October, Moodys said that the credit challenges facing Turkey included substantial external vulnerabilities, including a large current account deficit and history of political turbulence derived from conflict between secular and religious elements of society. Due to the size of the countrys external imbalances, Turkeys susceptibility to event risk is high and a prerequisite for Turkey attaining an investment-grade rating is a greater resilience to balance of payment shocks, such as a sharp decline in capital inflows into the country, Moodys explained in the statement. Moodys would consider upgrading Turkeys rating if the government made further progress in lowering its external vulnerabilities by structurally reducing its CA deficit, increasing foreign exchange reserves or reducing the private sectors external borrowing, the statement added. Some commentators expect a rating action announcement from Moodys which will hold a conference on November 21 in Istanbul. Earlier this month Fitch upgraded Turkey to investment level just ahead of a conference it held in Istanbul thus some commentators believe Moodys may similarly announce a rating upgrade before the event.

Moodys maintains its previous views about Turkey and rating action.

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