By Muhammed Ali Gurtas
ANKARA
Heads of the Turkish operations of Deloitte and KPMG have criticized Standard&Poor's (S&P) recent rating cut, claiming the decision was rushed and based on insufficient data.
"It is hard to understand that S&P’s decision – taken just after a defeated coup bid – reflects what kind of 'expertise' and 'proficiency' [they have]" Ferruh Tunc, chairman and senior partner at KPMG Turkey, told Anadolu Agency on Tuesday.
In wake of the July 15 coup attempt, which cost hundreds of lives and was foiled by citizens defying rogue soldiers, S&P cut Turkey’s foreign-currency denominated debt rating one notch to BB with a negative outlook.
In first trading day of the week after the coup attempt, Turkish markets opened as normal, defying the plot perpetrated by thousands of soldiers which included the bombing of parliament and National Intelligence Agency by fighter jets.
Turkey’s institutional ability to keep working functioned as a driver for a sense of confidence in the Turkish economy.
“The credit agencies should remember their shares in ongoing economic crises around the world, and show a responsible attitude instead of taking extreme decisions,” Tunc said.
“During such times, announcing ratings prematurely without waiting to see the main direction of economies could cause investors to make false decisions," he added.
Tunc expressed his institute’s confidence in Turkey, saying KPMG Turkey would continue to provide services as the country has a strong structural reform agenda and its macroeconomic fundamentals remained strong.
“Turkey is a multifaceted crystal, and we should be able to look at it and show it as a whole. Both domestically and internationally, it is a fact that people focus on minor pieces due to prejudices and a lack of understanding. This is the biggest problem that we have to overcome,” he said.
'No sign' of investor uncertainty
Gokhan Alpman, CEO at Deloitte Turkey, echoed Tunc’s remarks, stressing that a Turkey not challenged by overly rushed credit-rating cuts and economic turmoil would better serve Europe, the Middle East and global partners.
“The strength of Turkey's economic, political and democratic structures is crucial in terms of Europe, the Middle East and global allied countries," Alpman said.
Alpman, criticizing S&P for its immediate cut, said the coup was an extraordinary situation which experts needed time to examine.
“In our opinion, Standard and Poor's' rating cut decision was taken quickly and based on insufficient analysis. We believe that a close monitoring of country's economy for a time would provide much more accurate assessments," he said.
Regarding the attitude of investors towards Turkey, Alpman said there are no signs of effects on existing investments following the foiled coup but uncertainty in investors’ minds may linger.
“It is a global fact that investors do not like uncertain environments. So we believe that in the coming period both local and foreign investors will be inclined to act cautiously for new investments,” Alpman said.
“We believe diligent effort from every institution, including private and public sectors, in the country will help [us] to escape this uncertain environment. The investments will gain momentum again, after that,” he added.
