Rating upgrades 'confirm' Turkish eco performance: Minister

Economic resilience that Turkey had shown during the global economic downturn, thanks to government's policies, Turkish economy minister said

Rating upgrades 'confirm' Turkish eco performance: Minister

Economic resilience that Turkey had shown during the global economic downturn, thanks to government's policies, have led to recent rating upgrades, Turkish economy minister said on Friday.

Ali Babacan, who is also the Deputy Prime Minister, told the A.A in an exclusive interview that rating upgrades were a confirmation of Turkish economy's performance against the crisis.

Turkey has become one of the 14 countries whose ratings were upgraded over the past year. Turkey has recently won upgrades from Fitch and Moody's, two international credit rating agencies.

"Recent upgrades and success of 30-year bond issue are major indicators of market confidence in our country," Babacan said.

Last month, Fitch upgraded Turkey's rating two grades to "BB+". Moody's also upgraded on Friday Turkey's government bond rating to Ba2 from Ba3 for the first time after five years, reflecting growing confidence in government's financial shock-absorption capacity.

Earlier this week, Turkey raised 2 billion USD through a 30-year bond offer, in one of the first major sovereign bond issues, with a 6.85 percent yield.

Babacan said global financial crisis have been viewed also as a "stress test" for Turkish economy and government's economy administration, vowing that Turkish government was resolute to maintain fiscal discipline and implement structural reforms pledged in medium-term program.

"Market indicators showed that Turkish economy has been performing very well for a long time," he said. "However, all these positive indicators are not fully enough for us. We believe that the level of Turkish economy is much more beyond the level that ratings show."

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Last Mod: 10 Ocak 2010, 11:16
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