Standard & Poor's Rating Services said Tuesday it raised its long-term foreign currency sovereign credit rating on the Republic of Turkey to 'BB-' from 'B+'. At the same
time, Standard & Poor's raised its long-term local currency sovereign credit rating on Turkey to 'BB' from 'BB-'.
The outlook on both ratings is stable. In addition, the 'B' foreign and local currency short-term sovereign credit ratings were affirmed.
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. The outlook is stable. In addition, the 'B' short-term counterparty credit rating was affirmed. Meanwhile, the 'B+' long-term issuer credit ratings on the Turkish City of Istanbul remain unchanged, following the upgrade at the end of July 2004.
"The sovereign upgrade reflects the progress Turkey is making toward durable macroeconomic stability, and the country's expected adherence to a strict macroeconomic program beyond 2004, which would result in further fiscal improvement, disinflation, a more sustainable public debt burden, and reduced vulnerability to market sentiment," said Standard & Poor's credit analyst Konrad Reuss.(menareport.com)
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