Rate increase possible for Turkey: S&P
ISTANBUL - Hürriyet Daily NewsStandard & Poor’s, the London-based rating agency, said in a report yesterday that it could raise the ratings on Turkey if the economy demonstrates its flexibility by shifting its resources quickly toward net-export-driven growth.
“This would reduce external imbalances without significantly weakening the fiscal accounts or destabilizing the financial sector. We could also raise the ratings if social security reforms are deeper than we currently expect,” yesterday’s report said.
The ratings could stabilize at the current level if macroeconomic imbalances are not corrected during 2012, leaving Turkey vulnerable to external shocks, it said.