Fitch rates Turkey bond BB+

Fitch Ratings said it assigned the Republic of Turkey's $2 billion 6.75% eurobond due on May 30, 2040 a BB+ rating.

The eurobond has a yield of 6.85% and a spread over U.S. Treasury bonds of 225 basis points.

The rating is in line with Turkey's long-term foreign-currency issuer default rating, which was upgraded on to BB+ from BB- on Dec. 3, reflecting Turkey's relative resilience to the global financial crisis and some easing in prior acute constraints related to inflation, external finances and political risk, according to the agency.

The outlook is stable.

"The 30-year maturity and moderate yield on Turkey's sovereign eurobond highlights its creditworthiness and strong international capital market access," Edward Parker, head of emerging Europe at Fitch, said in a statement.

"The issue realizes a substantial part of the Treasury's 2010 annual eurobond issuance target of around $5.5 billion, as set out in its 2010 financing program."

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