S&P Global Ratings' Assessment on Turkey's Economy and Fund Investigation

S&P Global Ratings officials Karen Vartapetov and Regina Argenio made important evaluations regarding the economic impacts of the fund investigation in Turkey, as well as inflation, growth, and reserve status.

Credit Rating and Evaluation Calendar

S&P Global Ratings is expected to release its second credit rating and outlook assessment for Turkey this year on October 16. In its last evaluation in April, the agency affirmed the country's credit rating at BB-/B and kept the outlook stable.

Economic Impacts of the Fund Investigation

S&P Director Karen Vartapetov stated that the regulatory and policy response by authorities within the scope of the fund investigation was rapid and convincing, noting that the situation has been brought under control. It was emphasized that if the development remains isolated, it will not negatively reflect on the credit rating.

Inflation, Growth, and Reserve Expectations

Karen Vartapetov noted that they expect average inflation in Turkey to be around 30 percent this year, and economic growth to be close to 3 percent. Additionally, it was stated that the recovery in reserves supports the credit rating.

Stock Market and Banking Sector Outlook

Financial Institutions Director Regina Argenio stated that the most prominent effect of the fund process was seen in the stock market, with a decline in stock valuations, but stability was achieved following the initial correction.