No reason for rating downgrade thanks to resilient Turkish economy: Babacan
DHA photoThe Turkish economy’s continuing robustness precludes the need for any rating downgrade, according to Ali Babacan, a deputy from the Justice and Development Party (AKP) and former deputy prime minister who was responsible for the economy.
During an interview with Reuters, he also praised a number of measures that were immediately taken by the Central Bank after the attempted July 15 coup.
Addressing Moody’s and Fitch’s anticipated reviews of Turkey’s ratings this month, Babacan said any downgrade would be incorrect, adding that the agencies would face difficulties in explaining the justification for such a step.
Moody’s and Fitch could announce their decisions on Aug. 5 and Aug. 19, respectively, according to their pre-scheduled calendars.
“There is no reason to downgrade Turkey’s rating upon numerical assessments,” said Babacan.
Babacan said Turkey’s success in passing its democracy test was very positive.
He also said the Central Bank did what was required of it after the failed coup attempt.
Both the Turkish Lira and the market began to recover very soon after the coup attempt, Babacan added.