Standard & Poor's on Thursday revised its outlook on Turkey to stable from negative on the diminished near-term political uncertainty after the country's top court's decision not to ban the ruling Justice and Development Party (AKP). S&P affirmed the country's credit rating at "BB-". While Moody's said the challenges that the country faced has not changed when the case was filed in March and hold the government's Ba3 debt ratings remains stable. (UPDATED)
Turkey's increased reliance on foreign corporate borrowing to finance its current account deficit increases the risk to companies and is the main reason for the outlook revision on Turkey's ratings to negative from stable in April 2008, S&P said on Tuesday.