Mavi Boncuk |Fitch[1] rates Turkey BBB- with no change.[2]Investment grade
AAA : the best quality companies, reliable and stable
AA : quality companies, a bit higher risk than AAA
A : economic situation can affect finance
BBB : medium class companies, which are satisfactory at the moment
[1] Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.
Fitch Ratings is dual-headquartered in New York, USA, and London, UK. It was one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975, together with Moody's and Standard & Poor's, and the three are commonly known as the "Big Three credit rating agencies".
[2] Fitch Ratings has affirmed Turkey's Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BBB-' and 'BBB', respectively. The Outlooks are Stable. The issue ratings on Turkey's senior, unsecured foreign and local currency bonds have also been affirmed at 'BBB-' and 'BBB', respectively. The Country Ceiling has been affirmed at 'BBB' and the Short-term foreign currency IDR at 'F3'. KEY RATING DRIVERS Turkey suffered a renewed bout of investor unease in December-January as global risk aversion, stoked by uncertainty about the future direction of US monetary policy, collided with heightened domestic political and social tensions. These twin shocks put strong downward pressure on the Turkish lira, exposing finite limits to the Turkish authorities' ability to defend the currency while preserving international liquidity. In the event, the Central Bank (CBRT) bowed to market pressure on 28 January, raising interest rates by 425bp-550bp, taking the main policy rate to 10%. MORE