Japan Agency Says Turkey's Credit Rating Outlook Stable

Japan Credit Rating Agency confirmed Thursday Turkey's current credit status and said the country's outlook is stable. 



Turkey's rating is BBB-/BBB- which the agency said is supported by the country's relatively developed economy, which is bigger than Middle Eastern neighbors with a Gross Domestic Product -- a measure for economic output -- per capita exceeding $10,000. 



It added that sound public, banking and household sectors provide a buffer against economic shocks and are underpinned by strict fiscal policy and banking supervision. 



The agency, however, said the ratings are constrained by a "chronic" current account deficit and heavy reliance on international financial markets for external financing. 



The organization warned that Turkey needs to tackle fundamental challenges such as its low savings rate, which was 12.6 percent in 2013, chronically high inflation, which was 9.2 percent in consumer prices in June, and heavy dependence on certain goods imports.



www.aa.com.tr/en - Ankara