Boosting Turkish Companies’ Access to Capital Markets: An S&P Perspective on Driving Growth
S&P Global Report Highlights Potential Growth for Turkish Companies
S&P Global, a leading rating agency, has recently released a report titled “Improving Access to the Capital Market for Turkish Companies Could Promote Growth in 2024-2025”. The report sheds light on the current economic landscape for Turkish companies and the potential for growth in the coming years.
According to the report, most of the rated Turkish companies are well-positioned to benefit from the country’s recent shift towards a more orthodox economic policy. Despite facing challenges such as high inflation, volatile currency, and high interest rates in recent years, these companies have managed to maintain their independent credibility.
However, the report also highlighted some potential risks that could impact the growth prospects for Turkish companies. These risks include a hard landing in the country, economic slowdown in the Eurozone, volatile exchange rates, and uncertainties regarding the sustainability of the government’s policy change.
Alexander Griaznov, an analyst at S&P Global, expressed optimism about the future of Turkish companies. He believes that if policy reforms continue as planned, Turkish companies will have better access to international capital markets. This, in turn, will enable them to gradually increase their investments and shift their focus from survival to growth.
Griaznov also stated that despite increasing interest rates, Turkish companies are expected to maintain their current leverage and interest coverage criteria. Additionally, he does not foresee any further deterioration in profitability due to high inflation.
Overall, the S&P Global report paints a picture of cautious optimism for Turkish companies. While there are challenges and potential risks on the horizon, there is also a sense of resilience and potential for growth if the right conditions are met. As 2024-2025 approaches, it will be interesting to see how Turkish companies navigate the evolving economic landscape and seize the opportunities for growth.
