Turkey on Friday was singled out by Moody’s for its “economic resilience” after the ratings agency gave the country an upgrade. Could it mean, perhaps, that its exchange traded fund will continue to ride a wave of success through the new year?
There’s lots to like about Turkey these days:
- Turkey’s government bond rating was raised a notch to Ba2 at Moody’s. The agency cited the government’s “financial shock-absorption capacity,” reports Bloomberg.
- Turkish banks went through the crisis without seeking aid from the government.
- Fitch also boosted Turkey’s rating to BB+ in early December, while S&P rated the country BB- with a “stable” outlook.
- Despite prolonged negotiations with the International Monetary Fund (IMF) over a possible credit line, many are still betting on a recovery for the growing economy. Recent economic reforms have brought the Turkish economy up to speed with the rest of the world, but the recent market meltdown had anchored any more progress.
The Republic of Turkey raised $2 billion through a 30-year bond offer last week with a yield of 6.85%, in the first major sovereign bond issue from the developing world in 2010. Kejal Vyas for The Wall Street Journal reports that the bonds mature May 30, 2040, making this the longest duration bond offer from the country since early 2008.
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- iShares MSCI Turkey Index (NYSEArca: TUR) up 4% year-to-date