International Organizations Evaluate Investment Fund Liquidations and Crisis in Turkey
Following the liquidation of 131 investment funds, international credit rating agencies and investment banks examined the economic impacts.
The crisis that began with the liquidation of 131 investment funds in Turkey, affecting hundreds of thousands of investors, has entered the agenda of international credit rating agencies and investment banks, prompting assessments on market confidence.
Credit Rating Assessments by Fitch and S&P
Douglas Winslow, Senior Director at Fitch Ratings, noted that they view the fund investigation negatively but do not expect a direct credit rating impact at this stage.
Karen Vartapetov, Lead Turkey Analyst at S&P Global Ratings, stated that they do not foresee rating pressure if the process remains isolated and found the regulatory intervention convincing.
Decisions by Moody's and FTSE Russell
Moody's Ratings emphasized that the credit risk generated by the fund outflow is limited, but pointed out certain gaps in market oversight and supervision.
FTSE Russell, in its annual review, maintained Turkey's status as a 'Secondary Emerging Market' [Secondary Emerging Market / Advanced Emerging Market translated according to context] by not placing it on the watchlist.
Growth and Economic Risk Warning from JPMorgan
JPMorgan reported that the turmoil in the fund sector could exert pressure on economic activity in the fourth quarter of the year and poses a risk to the 3 percent growth forecast.
Following the liquidation process covering approximately 20 billion dollars in assets, the future trajectory of investor confidence is of critical importance.