ANKARA/LONDON - Standard & Poor's, a leading rating organization, raised Turkey's long-term foreign currency rating from ''B+'' to ''BB-'', also giving positive signal for the future.
Releasing a statement on Tuesday, Standard & Poor's noted that progress in qualifying for accession talks with the European Union (EU), together with a further strengthening of public finances, would be likely to improve the ratings.
''We believe that the risks on both the political and economic fronts are balanced,'' it said.
''On the political front, the challenges faced by the government are mitigated by its large parliamentary majority. On the economic front, the government has made clear its commitment to continue prudent policies beyond the current IMF program,'' the statement said.
It noted, ''private sector capital inflows, in particular, should benefit from greater political and economic stability and the government's EU-accession strategy. Conversely, severe policy slippage that jeopardizes current macro-achievements, a future IMF program, and EU talks would place the ratings under renewed downward pressure.''
Standard & Poor's also raised its long-term foreign currency counterparty credit and senior secured debt rating on the Export Credit Bank of Turkey to 'BB-' from 'B+', in line with the upgrade of the sovereign, the bank's sole shareholder.
Meanwhile, the 'B+' long-term issuer credit ratings on Istanbul Municipality remain unchanged, following the upgrade at the end of July 2004.
(EÖ-MS) 17.08.2004