In Brief
Turkey rating could face pressure, says Moody’s ISTANBUL (Reuters) – Moody’s Investor Service said yesterday that the Turkey rating could face downward pressure if economic and political developments hit debt ratios. The rating agency said it did not expect deterioration in Turkey credit metrics to warrant rating downshift. Moody’s rating for Turkey outlook is stable and the government bonds rating is Ba3. «The rating could come under downward pressure should either economic or political disarray meaningfully reverse the virtuous trajectory of the government’s debt ratios,» Moody’s said in a statement. The rating could be upgraded if the government demonstrates a stronger capacity to generate revenues and repay debt, as well as implementing structural reforms in the social security system, electricity sector, the labor market and the public sector. Although the pace of structural reforms has slowed, a number of initiatives are under way to address longer-term fiscal sustainability and growth, Moody’s said. Romanian joblessness flat at 3.8 pct in June BUCHAREST (Reuters) – Romania’s unemployment rate stayed flat at 3.8 percent in June, the employment agency said yesterday. Romania is struggling with a growing shortage of workers, mainly in construction and manufacturing, as more than one in 10 Romanians have left the country since the fall of communism in 1989, seeking higher wages abroad. Low unemployment and a race to catch up with Western standards have put pressure on Romania’s labor market, forcing employers into double-digit wage hikes in recent years, fueling inflationary pressure. However, analysts say many people who are unemployed are not reflected in the official figures because of long-term structural unemployment in rural areas. Photovoltaic forecast Kerself SpA, Italy’s biggest producer of photovoltaic cells, forecasts 2009 revenue rising to about 400 million euros ($629 million) as it signs new partnership accords and benefits from growing demand for solar panels. The company will produce at least 105 megawatts of solar panels and equipment for the Italian, Greek and Spanish markets over the next three years, Kerself said in a statement distributed by the Italian exchange yesterday. Kerself expects to meet analysts’ estimates of 2008 sales of about 200 million euros, according to the statement. The company reported sales of 86 million euros in 2007. Kerself also said it is forming a partnership with Avelar Energy, a unit of Russian billionaire Viktor Vekselberg’s Renova Group, which will give the Italian company «enormous new possibilities and a broader financial base,» Chief Executive Officer Pier Angelo Masselli told Bloomberg Television yesterday. (Bloomberg) Leu firms The Romanian leu firmed to its highest level this year versus the euro yesterday, in line with other regional currencies, which are more attractive for investors now that official interest rates are on the rise. «The leu is firming along with the region and it has more potential to firm further as it has to catch up with currencies which have been appreciating faster,» said one dealer with a foreign bank. (Reuters)
