ISTANBUL
The new Turkish government's economic policy following the upcoming June elections may bear risk over the country's credit ratings, International credit rating agency Fitch's senior director said Tuesday.
Addressing a teleconference on the Turkish economy, Paul Rawkins said that Turkey's dependence on external financing to narrow its current account deficit and geopolitical risks surrounding it were other factors affecting the country's economic outlook.
Fitch had affirmed Turkey's long-term foreign and local currency Issuer Default Ratings at BBB- and BBB respectively on Friday, leaving the outlook stable.
Another Senior Director Janine Dow said the Turkish banking sector was robust and favorable for foreign investors because of its profitability, while cautioning over volatility at interest rates and currency that could pose risk on funding lenders' foreign currency debts.
"Economic growth trend is quite positive for the Turkish banking sector," Dow added.
