S&p: Turkey's Election Outcome Has No Immediate Rating Impact

- The outcome of Turkey's general elections has no immediate impact on its sovereign credit ratings on the country, international rating company Standard & Poor's said in a statement released on Monday. S&P rates Turkey at BB+/Negative/B for foreign currency and at BBB-/Negative/A-3 for local currency.

The ruling Justice and Development Party (AKP) lost its majority in parliament for the first time in 13 years, garnering about 40 percent of the votes.

"We believe that the implementation of the last government's stated objectives, including structural reforms outlined in its development plan, will depend on key cabinet appointments and whether the AKP will choose to form a coalition or rule as a minority government" said the S&P.

The plan focused on ways to raise the domestic savings rate, cut the bill for imported energy, improve the currently low participation of women in the labor market, and reduce the size of Turkey's substantial informal economy, it said. "We believe this could help Turkey shift away from its current economic growth model, which remains highly dependent on net debt financing from abroad."

"We continue to see weak GDP performance in Turkey compared with previous historical norms as credit conditions have tightened, and business confidence remains muted" the S&P added.

The negative outlook on the ratings reflected the S&P's view of the fiscal risks emanating from Turkey's uncertain growth prospects against a backdrop of high net external debt and long-standing pressure on institutional checks and balances, the company stated. "As we have said before, we could revise the outlook to stable if economic growth continued to rebalance and depended less heavily on external borrowing."

Afyonkarahisar'da 3 kişinin silahla yaralandığı kavgayla ilgili yakalanan zanlı tutuklandı

Ordu’nun ilçelerinin çehresi değişiyor

Giresun’da istihdam seferberliği devam ediyor