Durkheim
20.09.2011, 16:29
S&P Lifts Turkey's Local-Currency Rating, Assets Surge
http://online.wsj.com/article/BT-CO-20110920-708071.html
DOW JONES NEWSWIRES
ISTANBUL (Dow Jones)--Standard & Poor's Ratings Services on Tuesday upgraded Turkey's local-currency rating into investment grade territory, sending Turkish assets sharply higher as traders rushed to invest.
In a statement, the ratings agency said that ongoing improvements in the country's financial sector and the deepening of local markets propelled the decision to upgrade Turkey one-notch to triple-B-minus from double-B-plus. The upgrade lands the ratings on the lowest rung of investment grade territory and gave a boost to stocks in Turkey. The outlook is positive.
The news initially sent Istanbul's benchmark IMKB stock index up to 6.5% higher, its sharpest gain since May 2010, before paring gains to trade more than 4% higher at 1230 GMT.
The lira mirrored those moves, rallying by almost 2% against the dollar on the positive ratings action before giving up some gains to trade at TRY1.7813 by 1226 GMT. In a further positive sign, the cost of insuring Turkish sovereign debt against default risk tightened six basis points to 255 basis points on the news, according to data provider Markit.
A one-basis-point tightening in five-year CDS equates to a $1,000 fall in the annual cost of protecting $10 million of debt for five years.
Economists welcomed the move, but urged caution that ratings agencies would upgrade Turkey's sovereign ratings to investment grade while the country kept running a wide current account deficit.
"This sends a strong signal that Turkey is still an improving credit story...Don't hold your breath though for S&P, Fitch or Moody's to follow through quickly on the long term foreign currency front," said Tim Ash, an economist at RBS in London.
The local currency upgrade still leaves Turkey's sovereign rating two notches below investment grade, suggesting that ratings agencies have lingering concerns over the fast-growing economies heavy reliance on external financing.
Turkey's economy has rebounded strongly from recession, posting an 11.0% gross domestic product expansion in the first half of 2011--the fastest growth of any G-20 economy.
...
Die Türkei musste sogar dieses Jahr aufgrund der Entwicklung die prognostizierte Wirtschaftsleistung von erwarteten 8.5% auf 11% erhöhen!
http://online.wsj.com/article/BT-CO-20110920-708071.html
DOW JONES NEWSWIRES
ISTANBUL (Dow Jones)--Standard & Poor's Ratings Services on Tuesday upgraded Turkey's local-currency rating into investment grade territory, sending Turkish assets sharply higher as traders rushed to invest.
In a statement, the ratings agency said that ongoing improvements in the country's financial sector and the deepening of local markets propelled the decision to upgrade Turkey one-notch to triple-B-minus from double-B-plus. The upgrade lands the ratings on the lowest rung of investment grade territory and gave a boost to stocks in Turkey. The outlook is positive.
The news initially sent Istanbul's benchmark IMKB stock index up to 6.5% higher, its sharpest gain since May 2010, before paring gains to trade more than 4% higher at 1230 GMT.
The lira mirrored those moves, rallying by almost 2% against the dollar on the positive ratings action before giving up some gains to trade at TRY1.7813 by 1226 GMT. In a further positive sign, the cost of insuring Turkish sovereign debt against default risk tightened six basis points to 255 basis points on the news, according to data provider Markit.
A one-basis-point tightening in five-year CDS equates to a $1,000 fall in the annual cost of protecting $10 million of debt for five years.
Economists welcomed the move, but urged caution that ratings agencies would upgrade Turkey's sovereign ratings to investment grade while the country kept running a wide current account deficit.
"This sends a strong signal that Turkey is still an improving credit story...Don't hold your breath though for S&P, Fitch or Moody's to follow through quickly on the long term foreign currency front," said Tim Ash, an economist at RBS in London.
The local currency upgrade still leaves Turkey's sovereign rating two notches below investment grade, suggesting that ratings agencies have lingering concerns over the fast-growing economies heavy reliance on external financing.
Turkey's economy has rebounded strongly from recession, posting an 11.0% gross domestic product expansion in the first half of 2011--the fastest growth of any G-20 economy.
...
Die Türkei musste sogar dieses Jahr aufgrund der Entwicklung die prognostizierte Wirtschaftsleistung von erwarteten 8.5% auf 11% erhöhen!