International credit rating agency Fitch senior analyst Douglas Winslow, in an interview with Reuters, the assessment found about Turkey’s economy.
According to the news the DW in the Turkish Fitch manager in Winslow, “Turkey’s relatively low debt levels and financial market turbulence experienced in the handoff, the country’s credit rating is BB- coronavirus effect and that help to resist the foreign currency shortage,” he said.
Winslow, Turkey’s already the main cause of the fragility of low credit rating, due to a lack of foreign exchange reserves and low credibility of the central bank noted that the need for foreign capital.
Fitch manager, stating that participated in Turkey’s current credit ratings into account these weaknesses, potentially notes three stages without these problems will be noted above.
DOES THE CREDIT GRADE BE DOWN?
“One of the things that could pull down the note would be that external pressures created more acute financing stress in banks and companies,” Winslow said. But we do not see such a thing at the moment, ”he said.
US-based Fitch upgraded Turkey’s credit rating last February “stable” outlook to “BB-” had confirmed.
“We think public debt will be more than 38 percent of gross domestic product. However, this still relatively good condition that BB level, “Fitch analyst Winslow uses the phrase,” We think this is why 51 percent of the average BB is still Turkey’s financial area, “he added.
INTEREST INCREASE EXPECTATION
Fitch thinks that if the pressure on Lira continues, Turkish officials will turn to the methods they used in past crises. Speaking on the subject, Winslow said, “We do not exclude the possibility of more capital control… However, the more probable scenario for us is what we saw last time: raising interest rates, albeit late”.
Turkey for an International Monetary Fund (IMF) program UnUysA very low probability of receiving Winslow, “no matter what we think that President Erdogan wanted to avoid it,” he said.
