Moody's revises Turkey's rating; outlook stable

NEW YORK

Moody's Investor Service revised Turkey's rating Friday to "Ba1" from "Baa3" and assigned a "stable" outlook.

The global credit agency said the move "concludes the review for downgrade that was initiated on 18 July," which began after a failed coup attempt.

Moody's said assigning stable outlook balances downside risks in the Turkish economy, which the agency defined as "large and flexible".

Turkey's economy continued to expand while the Turkish government still has "a strong fiscal track record”, it said. "The stable outlook on the Ba1 rating reflects the strengths in the credit profile, namely the government's robust balance sheet, which would allow for the absorption of shocks and flexible responses.”

Moody's noted that it now expects Turkey's GDP to grow at an average of 2.7 percent between 2016 and 2019.

The Turkish economy grew at an average annual rate of 5.5 percent between 2010 and 2014.

Moody's upgraded Turkey's rating to "Baa3" in 2013 and assigned a negative outlook to the rating in April 2014.

The next rating and outlook review is expected to be announced in December.