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18 April 2014, Friday
 
 
Today's Zaman
 
 
 
 

Scottish bank executive says S&P's Turkey rating wrong

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THIS IMAGE OF TIMOTHY ASH, ROYAL BANK OF SCOTLAND PLC CHIEF EMERGING MARKETS ECONOMIST, IS TAKEN FROM A VIDEO TITLED “TIMOTHY ASH - EMERGING MARKETS”. (PHOTO: TODAY'S ZAMAN)
4 May 2012, Friday /TODAYSZAMAN.COM
The head of Royal Bank of Scotland's (RBS) Emerging Markets Research said on Friday that international rating agency Standard & Poor's (S&P) Turkey rating was wrong.

Timothy Ash is the first international economist to support Turkish Prime Minister Recep Tayyip Erdoğan's reaction to S&P's decision to revise Turkey's rating to stable from positive. Ash said Erdoğan was right and that S&P's rating was wrong and he further noted that Turkey was a country that was robust and had high repayment power.

S&P said on Tuesday that it cut its outlook on Turkey's long-term foreign and local currency sovereign credit ratings to stable from positive due to “less-buoyant external demand and worsening terms of trade [which] could inhibit Turkey's economic rebalancing.”

Turkey definitely deserved a better rating, Ash said. He added that Turkey was fulfilling its liabilities and trying to solve its main problems, which should be taken into consideration by the international rating organization.

Turkey had fulfilled its liabilities after the economic crisis of 2001 despite many predicted scenarios, Ash said. The RBS official further said international markets considered Turkey an investable country. Something is wrong, either the markets or the rating organization is wrong, he also said.

Known for his research on Turkey since 1999, Ash said markets have not taken this unjust rating into consideration and that Turkey deserved a better rating with its repayment power and financial structure. He also said Turkey's rating should have been two or three degrees over this current rating, adding that Turkey already deserved an investable country rating.

On Thursday, premier Erdoğan lambasted S&P over its revision of Turkey's outlook and said: “This is totally an ideological decision. No one would buy that. And we shall declare that we do not recognize you any more as a credit rating agency. This is absolute nonsense even as you upgrade [ratings on] Greece, which still teeters on the edge of bankruptcy.”

 
 
COMMENTS
Let this Scottish bank executive put his money where his mouth is and buy up Billions in Turkish sovereign bonds. Talk is cheap, let's see some investments.
Abner Doubleday
Turkey has a strong economy which can look after itself. Turkey should ignore this rating agency and carry on merrily with life.
AbuBintain
And we shall declare that we do not recognize you any more as a credit rating agency. This is madness and ignorance. The last thing you would want is to pee-off S
simplesimon
RBS is in deep financial trouble itself and downgrading Turkey is making things even worse, because they have strong financial relations. So small wonder they support PM!
Geo
RBS is bankrupt
VTiger
Turkey should look deeper into her S
LEVENT
Turkey should look deeper into her S
LEVENT
Of course it is wrong. Would you believe it? They are upgrading bankrupt Greece. Is S
AliA
To look behind the reasons of Mr. Ash's concerns and approval to PM you have only to go to the homepage of the TSBTC or the homepage of angelo.edu. The downgrading of Turkey could do great harm to both projects!
migo
Of course it is wrong. Would you believe it? They are upgrading bankrupt Greece. Is S
AliA
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