DANGER: Fitch notes that Turkey's current account deficit has widened to $37 billion in the 12 months to September.
Fitch Ratings revised Wednesday its outlook on Turkey’s long-term foreign and local currency-issuer default ratings, or IDRs, from “stable” to “positive” affirming them as “BB plus.”
“The revision … reflects Turkey’s strong economic recovery, improving public finances and increasing confidence that a lasting transformation in the country's economic prospects and stability is underway,” said Ed Parker of Fitch.
“Nevertheless, there is some uncertainty whether Turkey can grow robustly without generating significant imbalances that pose a threat to macroeconomic stability."
Among these imbalances, Fitch noted the current account deficit, which has widened to $37 billion in the 12 months to September. The agency forecast the deficit at $44 billion by the end of the year, or 5.9 percent of gross domestic product.
Fitch also affirmed Turkey's short-term foreign currency IDR at “B” but warned that short-term capital inflows into Turkey could “expose the country to an abrupt shift in global liquidity.”
The revision came as the eurozone grapples with severe debt, with market fears spreading from Ireland to Portugal and Spain.
Source : http://www.hurriyetdailynews.com/n.php?msg=commentsaved&n=fitch-revises-turkeys-outlook-to-positive-2010-11-24 - Nov 24, 2010
“The revision … reflects Turkey’s strong economic recovery, improving public finances and increasing confidence that a lasting transformation in the country's economic prospects and stability is underway,” said Ed Parker of Fitch.
“Nevertheless, there is some uncertainty whether Turkey can grow robustly without generating significant imbalances that pose a threat to macroeconomic stability."
Among these imbalances, Fitch noted the current account deficit, which has widened to $37 billion in the 12 months to September. The agency forecast the deficit at $44 billion by the end of the year, or 5.9 percent of gross domestic product.
Fitch also affirmed Turkey's short-term foreign currency IDR at “B” but warned that short-term capital inflows into Turkey could “expose the country to an abrupt shift in global liquidity.”
The revision came as the eurozone grapples with severe debt, with market fears spreading from Ireland to Portugal and Spain.
Source : http://www.hurriyetdailynews.com/n.php?msg=commentsaved&n=fitch-revises-turkeys-outlook-to-positive-2010-11-24 - Nov 24, 2010
