Economy: Turkish president Erdogan warns Moody's and Fitch

Accusing the agencies of political motives in their assessments

16 September, 10:53

    (ANSAmed) - ISTANBUL, SEPTEMBER 16 - Turkish president Recep Erdogan has accused rating agencies Moody's Investors Service and Fitch Ratings of political motives in their assessments of the Turkish economy, and warned Ankara could cut its ties with them, daily Hurriyet online reports today. Both Moody's and Fitch have in recent weeks warned of the potential impact of continued political uncertainty following former prime minister Erdogan's victory on August 10 in the country's first direct presidential election. Local media quoted Erdogan as telling reporters on his plane back from a visit to Qatar late yesterday that such statements were politically motivated rather than based on assessments of the economy. "We stopped our cooperation with Standard&Poor's and if they continue on this path, I can tell the prime minister to stop cooperation with these two also," the Hurriyet daily quoted Erdogan as saying, although he added: "We haven't reached that point yet." Fitch, which rates Turkey BBB- with a stable outlook, said last Thursday that the Central Bank may face growing political pressure to cut interest rates despite rising inflation in the run-up to a general election next June. Moody's, which has a Baa3 rating on Turkey with a negative outlook, warned last month that Erdogan's victory in the presidential election did not resolve the country's credit challenges and that uncertainty would persist.


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