Revised Fitch methodology sends sovereigns down
Ratings agency applies new criteria in global review
Ankara
ANKARA
Fitch Ratings says it has introduced new criteria to assign credit notes, leading to lower ratings for some countries.
In a statement on Saturday, the ratings agency said: “Fitch Ratings has applied its revised Sovereign Criteria dated 18 July 2016 to conduct a global review of the notching relationship between sovereign Long-Term Local Currency (LTLC) and Long-Term Foreign Currency (LTFC) Issuer Default Ratings (IDRs), review existing Short-Term Foreign Currency (STFC) IDRs and assign new Short-Term Local Currency (STLC) IDRs”.
Upon application of new criteria, the Long-Term Local Currency (LTLC) ratings of 23 countries – including Thailand, Colombia and Bulgaria – were set lower than their previous notes.
“Fitch Ratings has downgraded Turkey's Long-Term Local Currency IDR to 'BBB-' from 'BBB'. The Outlook is Stable.
“The issue ratings on Turkey's long-term senior unsecured local currency bonds have also been downgraded to 'BBB-' from 'BBB'. The Short-Term Foreign Currency IDR has been affirmed at 'F3',” a separate release from Fitch said.
Turkey’s Long-Term Local Currency note – at “BBB-“ with a “stable outlook” – is within the range of investment grade. The Long-Term Foreign Currency rate, which stood at “BBB-”, is also an investment-grade note.
A new assessment of Turkey’s Long-Term Foreign Currency rate from Fitch is expected on Aug. 19.
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