Turkey’s rating could be upgraded if the country pursued fiscal and monetary policies that reverse the recent growth in internal and external imbalances, Moody’s Investors Service said on Wednesday.
“Credit-positive pressure could also develop if the government consolidates its buffers, such as foreign-exchange reserves; these would improve the sovereign’s resilience to balance-of-payment shocks,” it said in its annual sovereign report on Turkey.
The positive outlook on Turkish government’s sovereign debt rating of Ba2 reflects the resilience of country’s economy during the global financial crisis, Moody’s said.
The strengthening of the government’s balance sheet in recent years has also improved its ability to withstand shocks, it said. The rating agency added that Turkey’s most significant challenge is the current account deficit and its financing.
01 December 2011, Thursday / TODAYSZAMAN.COM WITH REUTERS,