Page 19 - Turkey Outlook 2022

For investors who are not short-term professional 'hit-and-run' types, there is
little attraction in attempting steady investment on the Borsa Istanbul.

6.3 Bonds

Let’s boilerplate again: “Turkey generally sells eurobonds in January, aiming to
take a piece of the market as new year investment plans are rolled out.

“Subsequent issues from Ankara usually follow in the early months of the year,
though there is flush liquidity as things stand, meaning there is no scramble to
capitalise on the investment plans.”

Turkey eurobond auctions have not taken place since September. There are
some small-cap candidates seeking chances, including Turk Eximbank,
Sekerbank (SKBNK), Albaraka Turk (ALBRK), Guris Holding, Calik Holding,
Istanbul Municipality, Aktif Yatirim Bankasi and Nurol Holding.

Credit ratings

Fitch Ratings rates Turkey at BB-/Negative, three notches below investment
grade. Moody’s rates Turkey at B2/Negative, five notches below investment
grade, while Standard & Poor’s has Turkey at B+/Negative, four notches below
investment grade.

Downgrades are on the way.

TURKEY - Rating Jun-18 Jul-18 Aug-18 Jun-19 Jul-19 Nov-19 Aug-20 Sep-20 Feb-21 Dec-21 Feb-22
Moody’s Ba2 (UR) Ba2 (UR) Ba3 (N) B1 (N) B1 (N) B1 (N) B1 (N) B2 (N) B2 (N) B2 (N) B2 (N)
Fitch BBB- (S) BB (N) BB (N) BB (N) BB- (N) BB- (S) BB- (N) BB- (N) BB- (S) BB- (N) BB- (N)
S&P BB- (S) BB- (S) B+ (S) B+ (S) B+ (S) B+ (S) B+ (S) B+ (S) B+ (S) B+ (N) B+ (N)

19 Turkey Outlook 2022 www.intellinews.com