Japan Credit Rating Agency has upgraded its ratings on Turkey's foreign and local currency long-term senior debts from BB- to BB. The outlook of the ratings is stable.
On its official website, JCR stated that the ratings primarily reflect the improved resilience to external shocks the Turkish economy has displayed in the face of the global financial crisis. It points out that the two factors of the improved fiscal position and financial system in the recent years supported the Turkish economy realizing an autonomous recovery.
The Agency noted that the government's fiscal position has significantly improved when compared with the 2001 crisis and IMF-backed reforms also influenced the improvement of the financial system.
While emphasizing a growth higher than 5 percent may be within reach for 2010 thanks in part to the base effect, JCR stated that a deal to be signed with IMF and negotiations with the European Union are crucial for Turkey to maintain its political and social stability as well as its international confidence.