Fitch's upgrade welcomed by the government

Deputy Prime Minister Ali Babacan, who is responsible for the government's economic policies, has welcomed Fitch's upgrade Turkey to investment grade, saying it was appropriate and overdue and expressing hope that other ratings agencies would follow its move. "Turkey's achievement of this credit rating is expected to mark the start of a new era in the access of our public and private sector institutions to international capital markets," Babacan said yesterday. Moody's rates Turkey one notch below investment grade, while the S&P puts it a rung lower still. The move also pleased Finance Minister Mehmet Simsek, who said that the upgrade would positively affect risk perception and boost capital inflows and the country's performance. The upgrade is the "validation of a belated right," Economy Minister Zafer Caglayan said in a written statement. Caglayan stated that despite a shortfall in exports to EU countries, Turkey's foreign sales increased 13.7 percent in the first nine months of the year, which is positive sign. "I hope this upgrade will show the way to other rating agencies," Caglayan added.