Every foreign entrepreneur who is interested in setting up a company in Turkey should be informed about a few financial issues regarding this country that can affect his future business. After the beginning of the economic crises, the rating agencies have downgraded the ratings of major economies in the world, so the investors should be concerned about negative changes that can occur anytime.
The credit rating for Turkey was upgraded to investment grade (Baa3) by Moody’s, in May 2013. This was an important sign for foreign investors interested in doing business in this area and who have been impressed by the recent growth of economy in Turkey. The decision to improve the credit rating that has a stable outlook was taken due to the improvements in the Turkish economy.
"Since the beginning of 2009, Turkey's debt burden has fallen by 10 percentage points to a manageable 36 percent of GDP, and Moody's expects this decline to continue in the coming years," the specialists from Moody's said.
They wrote in their report about the reforms in Turkey, including the new Commercial Code that contains measures meant to attract the foreign investors by simplifying the bureaucratic procedures for opening a company in Turkey.
Turkey obtained, in 2012, a BBB-minus with a stable outlook investment grade, according to Fitch Ratings, while Standard & Poor's considered Turkey just a step below investment grade - BB-plus with a stable outlook.
In 2013, Standard&Poor’s improved Turkey’s sovereign credit rating to BB+, with stable outlook, due to the fact that Turkish economy showed signs of improvement. The sovereign rating of Turkey was upgraded, in 2012, to investment grade. The specialists from Moody’s decided to rise the rating to investment grade in 2013.
At the beginning of 2014, the credit rating for Turkey was BB, according to Standard&Poor’s, and BBB-, according to Fitch. The credit rating influences the borrowing costs for Turkey and it is important for major investors in the world, such as pension funds, sovereign wealth funds, to evaluate the credit worthiness of a country.
If you need more details about the outlook of the Turkish economy and the opportunities to invest in this country, you may contact our agents in company formation. They will also help you set up a company in Turkey, no matter what type of firm you choose to register.