Fitch waits for new IMF deal before possible rating action. Nick Eisenger, Turkey analyst of the rating agency Fitch said that the financing to be provided by the new stand-by arrangement with the IMF would be determining for a possible rating action against Turkey.
Eisenger added that other developments to be watched with regard to the rating actions were the EU summit in December, and the course of fiscal discipline. The analyst expects the accession talks to start towards the end of 2005.
Eisenger commented that the current account deficit would further come down in 2005, and projected that CA/GDP ratio would be 5.1% in 2004, and 5% in 2005. However, the Fitch official furthered that the current account deficit was the weakest point of Turkish economy.
In August, Fitch changed outlook on Turkey’s long-term foreign and local currency ratings of “B+” to positive from stable. The short-term rating was affirmed at “B” and the country ceiling rating at “B+”.