ISTANBUL (Reuters) - Turkey's central bank acted to support the lira on Tuesday and Turkish debt insurance costs rose, as markets - looking past data on faster economic growth - took fright at fresh police and protester clashes in Istanbul.
Fitch Ratings has broken rank with its two fellow ratings agencies and upgraded the Philippines’ sovereign rating to investment grade for the first time, citing the resilience of the domestic economy, improved fiscal management and prudent monetary policy.
The Philippine stock index surged to a record high on Wednesday following the long-awaited ratings action, which is expected to precipitate similar moves by the other major debt watchers in the coming months.
By Tom Lydon:
Turkey's credit rating was recently upgraded to investment grade status on stronger economic strength and less short-term risks, boosting the country's markets and the exchange traded fund. The iShares MSCI Turkey Investable Market Index Fund ETF (TUR) is the best-performing unleveraged ETF the past month.
Marc Chandler submits:S&P upgraded Turkey's long-term foreign currency rating to BB from BB- and said the country has a positive outlook which suggests the likelihood of additional rating increase, which could come in the next year or two.Our proprietary model is consistent with a BB+ rating. The reduced debt burden and the stability of Turkish banks were behind the S&P decision.While Turkey's debt market did not seem to respond to the news, the lira did.
Daryl Montgomery submits: According to ratings agency Moody's (MCO), the credit ratings of the world's four largest Aaa-rated sovereign nations - the U.S., UK, Germany and France - are currently "well positioned despite their stretched finances." The agency does, however, admit that risks have grown. Based on Moody's past actions, this should give investors little comfort.
By Benzinga: Shares of the WisdomTree India Earnings Fund (EPI), the largest India ETF by assets, traded higher by 1.1 percent Tuesday after Moody's Investors Service reiterated a stable outlook on India's sovereign debt rating. Moody's also affirmed a Baa3 credit rating for India, which is one notch above non-investment grade status.
In a confirmation that the S&P is starting to get worried about the drones surrounding the McGraw Hill building resulting from the ongoing litigation with Eric Holder's Department of Injustice, not to mention a reminder that US downgrades always happen after hours, while upgrades must hit before the market opens, Standard & Poors just upgraded the Standard & Poors 500 the US outlook from Negative to Stable.
NEW YORK — Rating agency Standard & Poor’s on Tuesday raised Greece’s sovereign credit rating to B-minus with a stable outlook from selective default, citing Europe’s efforts to keep the country part of the euro.
“The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone,” S&P said.
ATHENS — Ratings agency Fitch upgraded its sovereign credit rating for Greece by one notch on Tuesday, citing the country’s progress in cutting its budget deficit and the receding risk of its eurozone exit.
After nearly crashing out of the euro last year and coming under attack for stalled reforms, Greece has won praise in recent months from its international lenders for getting back on track and pushing through unpopular austerity measures.