Turkey has investment grade status: Japan Credit Rating

ANKARA

Turkey still retains the status of investment grade country even after Moody's recent rating cut, Eurasia administrative council director of Japan Credit Rating Agency (JCR), Orhan Okmen, told Anadolu Agency on Tuesday.

Credit ratings agency Moody's recent decision saw Turkey's rating downgraded to non-investment grade.

Okmen said that for the great majority of pension funds to be able to invest in a country's economy, investment grade status needed to be confirmed by at least two international rating agencies, regardless of recognition.

"Those credit agencies being renowned more or less is not a criterion. The basic criterion is being a 'Nationally Recognized Statistical Rating Organizations [NRSRO]'," Okmen said.

Of the 10 Nationally Recognized Statistical Rating Organizations currently recognized by the Securities and Exchange Commission (SEC) in the U.S., two have Turkey's sovereign credit rating as investment grade, according to Okmen.

"One of those agencies is Fitch and the other is JCR. Thereby, Turkey still retains its investment grade position," he said.

Okmen also added that foreign exchange liquidity in Turkey was resilient and sufficient in case of possible shocks .

"[There is] no problem in the ease of access to funds, public debt and the interest burden are at very reasonable levels. Therefore, in terms of financial stability Turkey is [...] in place," he added.