No reason to reduce credit rating says Turkey's Babacan

ANKARA (AA) – Turkey’s former deputy prime minister has said there is “no valid reason” to reduce the country’s credit rating following the failed July 15 coup.

In a Friday interview with a private television channel, Ali Babacan – who formerly had a high-profile role in managing Turkey’s economy – said: “Technically and with numerical assessment, currently there is no valid reason to reduce Turkey's credit rating.”

Babacan’s comments come after international ratings agency Standard & Poor's on Wednesday downgraded Turkey's main sovereign rating from BB+/B to BB/B in the wake of the July 15 coup attempt, though it had only minor economic impact.

Fellow international ratings agency Moody’s said on July 18 it was reviewing the country's credit rating after the failed coup.

Babacan asked ratings agencies "to listen to Turkish officials and the public before any decision about the rating”.

“We have to see this, the economic foundations of the country were solid," Babacan said.

Commenting on the failed coup bid, Babacan said: “This is a black mark on democracy but people in Turkey defended democracy.”

Babacan also called on international investors and analysts to come and see the situation in the country:

"Talk with the private sector and people. Both banking and real sectors passed a major test… Turkey is a country with experience in crisis management."

"If we look at the overall picture, there is no situation that is very concerning. But it needs to be managed carefully,” Babacan said.

The former deputy prime minister emphasized that fast progress in structural reforms is vital for markets and to overcome problems in the economy after the accident.

He said that difficult situations are the best times to do necessary-but-difficult reforms.

"So this process is very important. If we want to overcome problems in the economy, fast-track reforms are needed."

Babacan added that Turkey’s three-month state of emergency will not affect the economy.

“The economy will work within market rules,” he said.

Ankara declared a state of emergency late Wednesday for three months in response to the coup attempt.

At least 246 people, including members of the security forces and civilians, were martyred and more than 2,100 others were wounded as they protested the coup attempt.