In fact it is expected that Moody’s will announce a move similar to Fitch’s later in November when it holds a meeting in Istanbul… but ratings agencies are themselves being carefully scrutinized, as analysts say they have a lot to make up for if countries are to fully trust the ratings they announce.
Indeed, Turkey’s Prime Minister has publicly stated his distrust of ratings agencies. In May, Standard and Poor’s reduced its outlook on Turkey from Positive to stable, angering the Prime Minister. Months later and Fitch sees things differently.
But Fitch has concerns which include Turkey’s current account deficit, which analysts say they are watching closely to see if short term measures announced by the Government will help reduce. And while the Prime Minister reacted angrily to earlier criticisms from Standard and Poor’s, it remains to be seen how concerns expressed in Fitch’s report about overheating the economy, will be met.
Analysts say there is no denying the economic achievement of Turkey in the last decade… But at least one agency says it must also not forget the country’s checkered economic past. Couple that with the concern of another agency about the Unrest in Syria close to its border, and it could be a recipe for a return to darker times.