Turkey: S&P upgrades Turkey’s outlook to “stable”

S&P changes Turkey’s outlook to “stable” from “negative”, while rating the Turkish economy at “BB.” S&P revised Turkey’s outlook up to “stable” from “negative” in its last regular assessment for this year, while keeping “unsolicited” foreign and local currency credit ratings unchanged at ‘BB’ and ‘BB+’, respectively. According to the agency, the upgrade reflects the Turkish economy’s resilience against regional and domestic risks, while it believes policymakers will continue to implement reforms for economic stability. The country’s internal environment was also considered in the decision to revise the rating, while the state of emergency following the coup attempt in July 2016 is predicted to remain in place until at least January 2017. The announcement came after markets closed following a busy day with a sharp increase in USD/TRY to all-time highs on the back of local political developments.