Krungsri Asset Management keeps an eye on Turkey’s rating downgrade with a confidence that funds will not be affected thanks to their invested asset’s stability.

28 September 2016

Miss Siriporn Sinacharoen, Managing Director of Krungsri Asset Management Company Limited (KSAM) said that “Following a failed coup attempt in Turkey in July, Moody’s finally downgraded the Government of Turkey's long-term issuer and senior unsecured bond ratings to Ba1 from Baa3. This fact possibly affects international investors’ appetite for capital and results in weakened economic fundamentals, especially their growth.”

“Such rating downgrade will not significantly affect our investment ports since they are short term and our assets invested in Turkey are banks whose financial status and ability to repay debt are strong. Besides, those banks carry a high level of Capital Adequacy ratio with ROE at more than 10% and liquidity factors at significant level.

“Moreover, an opportunity to release capital control as being a main concern for many investors is very rare considering Turkey’s intention to join EU. On the contrary, an implementation of the capital control will force the Turkey to step backward from major economic development.”

“Our fund managers had actually predicted this rating downgrade with a recent investment slowdown in Turkey for a particular period in order to evaluate the situation and impact after rating downgrade. However, we will keep an eye on the situation with a close evaluation for investors’ benefits.”

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Krungsri Asset Management keeps an eye on Turkey’s rating downgrade with a confidence that funds will not be affected thanks to their invested asset’s stability.

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