Standard & Poor's confirms Turkey's credit rating

Standard & Poor's confirms Turkey's credit rating

A statement by international credit rating agency Standard & Poor's confirmed Turkey's credit rating. Standard & Poor's statement confirmed Turkey's long-term foreign currency credit rating as "B+" and its long-term local currency credit rating as "BB -". Turkey's credit rating in short-term foreign currency and local currency was confirmed as "B", the statement said, while Turkey's credit outlook was "stable". The statement said the stable outlook offset downside risks and public net debt stock due to the coronavirus (Covid-19) outbreak against the resilience of the private sector. Standard & Poor's said that despite the fluctuations in the exchange rate and economic deterioration caused by Coronavirus, the Turkish economy was expected to recover in the second half of 2020. Coronavirus (Covid-19) outbreak effects of the Turkish economy this year is expected to shrink 3.3 percent stated in the statement, economic growth in the second half of 2020 is possible to show a recovery was recorded. In the statement, which is said to indicate signs of re-emergence of past imbalances, including the rapid increase in credit growth, double digit inflation and the widening of the current account deficit in recent months, the ratio of net public debt to gross domestic product (GDP) ratio, unless Turkish banks need extensive public support. It was said to be at the level of 35 percent at the end. The outbreak in Turkey, said in a statement appears under control, compared to other developing countries, the situation was made speculated to experience a faster recovery. In the statement, which stated that a recovery of 4.5 percent is expected in 2021, some predictions about inflation rates were made. These forecasts are 10.6 percent of inflation this year; It was 9.4 in 2021, 9.2 percent in 2022 and 9 percent in 2023. The unemployment rate in Turkey this year, 14.3 percent, 12.4 percent in 2021, 11.2 percent in 2022 and 2023 is estimated at 10.7 percent.