World Bulletin/News Desk
External vulnerabilities pose risks for Turkey’s credit rating, its banks and corporations, credit ratings agency Moody’s said on Tuesday.
In a report released on its website, Moody’s noted that “the recent rise in geopolitical risks, the continued domestic policy uncertainties” as well as the anticipated interest rate hikes from the U.S. Federal Reserve would affect foreign capital inflow to Turkey.
“According to Moody's, these challenges are putting pressure on the credit profiles of the Turkish sovereign, its banks and (...) corporates,” Moody’s said.
The agency also pointed out that although government finances constituted a positive factor, they were likely to be negatively affected from the growth environment, which is much weaker than it was in the 2010-13 years.
“Moody's believes that Turkish corporates will be particularly hard-hit by lower economic growth, although export-focused companies will benefit from a depreciation of the Turkish lira,” said the report.
Last Mod: 04 Kasım 2014, 14:46