Ratings firm reflects on external debt

"The reduction of the export capabilities due to the contraction of international demand underscores the high risks in external debt services," Japan Credit Rating Agency, or JCR, said in a statement. Shrinking current account deficit eased the risk factor, it added. JCR rates Turkey’s credit rating at BB- with a stable outlook. JCR said the relations with the International Monetary Fund will be decisive in Turkey’s capability to sustain its external debt service, adding it hopes the country will not underestimate the importance of this anchor.

On the political side, the agency noted, the public support and the integrity of the government remain intact. "But on the other hand, the need to improve the democratic responsibilities, degeneration and quality of bureaucracy continues," it added. "The social economic parameter which covers unemployment, consumer confidence and welfare became most negative and most sensitive issue among the political risk factors in 2009."