Moody's: Settlemet process positive for Turkey's credit rating

Credit rating agency Moody's has said a settlement process between Turkey and the Kurdistan Workers' Party (PKK) is a positive development for the country's credit rating. In a statement released on Thursday, Moody's, which is the only agency that hasn't raised Turkey's credit rating in the recent period, said the process will also increase the country's attractiveness for foreign investors. Turkish state authorities, working to set a timetable for the disarmament of PKK terrorists, have been holding settlement negotiations with the terrorist group's imprisoned leader, Abdullah Ocalan, since October. Ocalan has significant influence among PKK members and supporters, and the state believes that talks with Ocalan will lead to its goal of a PKK withdrawal and, in the long run, full disarmament. Observers say Turkey will see huge economic development once the solution process is concluded successfully. Moody's rates Turkey just below investment grade, at Ba1. It is speculated that it will raise Turkey's rating within the first half of this year. Standard and Poor's (S&P) recently raised Turkey's credit rating to within a notch of investment grade -- to BB+ from BB -- citing a rebalancing economy and progress in the settlement process in the decades-old Kurdish issue, while Fitch upgraded the country to investment grade in November.