But pitfalls loom
Sun, 19 May 2013
By Paul Taylor — TURKEY'S achievement of investment-grade status crowns a decade of rapid growth, financial stability and political reform by a "tiger" economy on the seam of Europe and Asia, but the rising power still faces pitfalls in a dangerous neighbourhood. Moody's Investors Service raised its rating on Ankara's sovereign bonds to Baa3, or investment grade, from Ba1 late last Thursday, following in the footsteps of Fitch credit ratings agency, which took that step last November.
The upgrade came on a day when Prime Minister Tayyip Erdogan was showcasing Turkey's global prestige on a visit to the White House, and in a week when the emerging nation of 75 million made a final loan repayment to the International Monetary Fund. "It was a major strategic step for Turkey," said Erdal Tanas Karagol, economic director of the SETA think-tank in Ankara. "This will help the current ruling party prepare long-term plans, to set higher goals and will generate a suitable international environment to carry out those plans."
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