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some financial support to developing countries, some of which, it is implied, could go to Ankara.
In May, North Macedonia (S&P/BB-/Stable and Fitch/BB+/Negative) sold €700mn of 6-year eurobonds with a 3.657% coupon while Romania (Moody’s/Baa3/Negative, S&P/BBB-/Negative and Fitch/BBB-/Negative) sold €1.3bn of 5-year paper at Mid-Swap+305bp and €2bn 10-year ones at MS+375bp.
It was January 2019 when the Turkish Treasury last sold euro-denominated eurobonds. Since then, it has sold USD paper before swapping them to euro cost.
Fitch Ratings rates Turkey at BB-/Stable, three notches below investment grade. Moody’s Rating Services rates Turkey at B1/Negative, four notches below investment grade, while Standard & Poor’s has Turkey at B+/Stable, also four notches below investment grade.
Fitch’s second rating review release for Turkey is expected on August 21. Moody’s reviews are scheduled for June 5 and December 4, while S&P is set to release its last scheduled review for this year on July 24.
“Have EM flows improved in the last few weeks? YES. Has EM issuance helped? CERTAINLY. Are we past the worst? PROBABLY. Are we back to before the #COVID19 shock? NO. EM flows do NOT show mean reversion atm, we are seeing structural breaks in the series,” senior economist Jonathan
35​ TURKEY Country Report​ July 2020 ​ ​www.intellinews.com