ANKARA
Credit rating agency Moody's has said the solution process on Turkey's Kurdish issue was a positive development for the country's credit rating, on Thursday.
In a written statement, Moody's said "the Government of Turkey (Ba1 positive) agreed to form a parliamentary investigative commission "to evaluate the resolution process" a visible and credit-positive step in the country's progress toward peace after last month's ceasefire in the 30-year war between the violent separatist group of the Kurdistan Workers' Party (PKK) and the Turkish state."
The conflict in the country's southeast had been a longstanding source of political uncertainty constraining Turkey's creditworthiness said the statement, adding previous peace attempts between the two sides have failed, the current ceasefire and the proposed establishment of a parliamentary commission to oversee the peace process were the strongest signals to date that peace talks launched last October were building momentum.
Moody's suggested that the prospect of peace promises would boost investor confidence and improve southeastern Turkey's attractiveness as a destination for foreign direct investment, which would deliver economic benefits and reduce Turkey's external vulnerabilities, enhancing sovereign creditworthiness.
Reminding that the military conflict has claimed more than 40,000 lives since its outbreak in 1984 and also weakened international investor sentiment toward investing in Turkey's southeastern regions, Moody's said
Moody's, which is the only agency that hasn't raised Turkey's credit rating in the recent period, rates Turkey at Ba1 -just below investment grade. It is speculated that it will raise Turkey's rating within the first half of this year. Standard and Poor's (S&P) recently raised Turkey's credit rating to within a notch of investment grade -to BB+ from BB-, while Fitch upgraded the country to investment grade in November.
Bourse Istanbul up in morning session after the statements of Moody's
Bourse Istanbul (BIST 100) index was up at the opening of the morning session on Thursday after the positive statements of Moody's.
The benchmark BIST-100 index increased 634.47 points when compared to closing of Wednesday's second session and opened at 83.038.79.
Stocks gained 0.77 percent in value.
Moody's stated earlier on Thursday that Turkey's solution process on Kurdish question was positive for Turkey's credit rating.
"Bourse Istanbul" was registered on April 3, disincorporating Istanbul Stock Exchange (ISE) and Istanbul Gold Exchange (IAB).
