ANKARA (AA) - Standard & Poor's (S&P) Ratings Services has affirmed its unsolicited long and short-term foreign currency sovereign credit ratings on the Republic of Turkey at 'BB+/B, describing country's outlook as "stable".
S&P stated in its announcement that "the key ratings constraint continues to be Turkey's high external risks, which are associated with its large current account deficits and substantial net external liability position".
The report made positive remarks on Turkey's fiscal discipline and growth.
Regarding inflation in Turkey, S&P stated, "We expect inflation to reach 8% by the end of 2013, but to ease again when the lira stabilizes."
"Credit growth stands out among the risks Turkey faces according to the S&P's announcent," analysts say.
They anticipated that the risk in credit growth will not be reflected on pricing, considering the recent measures taken by the Turkish government and Central Bank on the issue.
