S&P: Fund Liquidation Process Will Not Pressurize Credit Rating
S&P Global Ratings officials announced that the liquidation process of certain funds in Turkey will not create downward pressure on the credit rating as long as it remains isolated.
Officials from international credit rating agency S&P Global Ratings reported that developments regarding the liquidation process of certain funds in Turkey are not expected to create downward pressure on the country's credit rating.
Liquidation Process Remained Isolated
Karen Vartapetov, Director and Lead Analyst for Central and Eastern Europe and CIS Sovereign Ratings at S&P Global Ratings, and Regina Argenio, Director of Financial Institutions, emphasized that the authorities' policy response was swift and convincing.
No Broad Impact Observed
The officials stated that the situation has been brought under control and has no broader negative impact on the financial system, noting that there is not much evidence suggesting the process negatively affects confidence in the Turkish economy.
Economic Outlook and Reserves
Vartapetov stated that they project average inflation this year to be around 30 percent and economic growth to be around 3 percent, adding that the recovery in reserves is supportive of the credit rating.