Agency visits prompt upgrade expectations

Hülya Güler ISTANBUL / Hürriyet

The rising hopes on a rating upgrade is boosting up the Borsa Istanbul.

Moody’s and S&P delegations visited Turkey last week, strengthening the expectations about the rise of Turkey’s credit rating. Since the delegations from the two credit rating agencies visited Ankara and Istanbul last week, Turkey is now at the latest corner before a rise in its credit rating, sector experts said.

Many expect such a rise for Turkey after the Fitch Ratings upgraded Turkey to investment grade on November 2012. The latest visits by both Moody’s and S&P to Turkey last week is assessed by sector experts as the last visit before a rise in Turkey’s credit rating. “I certainly expect a rise in our credit rating,” Turkish Economy Minister Zafer Çağlayan said last week.

The most interesting point about the S&P’s visit appears to be quite high profile of the 5-person delegation. “Although S&P says this is a routine visit, the visit by such five high profile executives does not appear that routine, a sign for Turkey to be important,” a Turkish C-level who met the S&P delegation.

S&P delegation showed its concerns about the high levels of Turkey’s debt, especially short-term debts. “We beware of some of the liquidity has the potential to flow into Turkey but this is hot money in the end,” the S&P delegation noted.