Negative outlook persists for Turkish companies: Moody’s
The outlook for non-financial firms both in Turkey and South Africa remains negative for the coming 12 to 18 months, Moody’s Investors Service said Dec. 13 in its annual report titled “Non-financial corporates - Middle East, Turkey and South Africa: 2019 Outlook.”
“While the outlooks for companies in Turkey, South Africa and Gulf Cooperation Countries remain unchanged versus last year, the diverging regional trends will continue into 2019,” said Rehan Akbar, Moody’s vice president.
“Economic contraction in 2019 will create further challenges for the majority of businesses as they will continue to be constrained by either a lack of access to credit or unaffordable credit,” it said.
It also suggested that export-oriented manufacturing companies or companies that have the flexibility to shift to exports when domestic demand declines are better positioned to face challenges, supported by a more competitive lira.
“Tighter financial conditions in Turkey will be compounded by gradual tightening of monetary policy in advanced economies, a key risk for corporates’ access to funding,” Moody’s warned.