Fitch Ratings has changed the Outlook on the Municipality of Metropolitan Istanbul's foreign and local currency Long-term ratings of B- to Positive from Negative. This follows the change in the Outlook on the Republic of Turkey's sovereign rating of B- to Positive from Negative.
The rating action reflected recent positive developments that argue well for an improvement in sovereign creditworthiness, notably the completion of the fifth review and deferral of net $6.8 billion of repayments in 2004 and 2005 under the current International Monetary Fund (IMF) program.
Central to underpinning a material improvement in Turkey's credit fundamentals is continuing fiscal consolidation necessary to place public finances on a sustainable path. Progress in meeting this year's public sector primary surplus target of 6.5 percent of Gross National Product (GNP) would support further positive rating actions by Fitch. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
