ANKARA
The inconclusive result of Turkey's parliamentary election increases near-term political uncertainty and may aggravate tensions regarding economic policy, Fitch Ratings said in a note late on Monday.
"This could increase risk to the sovereign credit profile, depending on how policymaking is affected," the agency warned.
"The election heightens uncertainty about economic policy and personnel that had emerged before Sunday's vote," the note said.
Fitch expressed concern about the danger of "widening budget deficits," if a coalition government cannot manage spending efficiently.
Prolonged political uncertainty could also lead to a souring of investor sentiment, Fitch warned.
Fitch affirmed Turkey's 'BBB-'/Stable credit rating on March 20, which is a solid grading indicating good credit quality.
