Turkey’s credit rating outlook stable, says Japan agency

ANKARA – Anadolu Agency

Japan Credit Rating (JCR) Agency has confirmed Turkey’s current credit status and said the country’s outlook is stable.

Turkey’s rating is BBB-/BBB-, which the agency said is supported by the country’s relatively developed economy, which is larger than its Middle Eastern neighbors, with a Gross Domestic Product (GDP) per capita exceeding $10,000, the agency said in a statement released July 10.

The JCR added that sound public, banking and household sectors provide a buffer against economic shocks and are underpinned by strict fiscal policy and banking supervision.

The agency, however, said the ratings are constrained by a “chronic” current account deficit and heavy reliance on international financial markets for external financing.

The organization warned Turkey needs to tackle fundamental challenges, such as its low savings rate, which was 12.6 percent in 2013, chronically high inflation, which was 9.2 percent in consumer prices in June and heavy dependence on importing certain goods.