Fitch says Turkey's rating to remain intact even without an IMF deal

"We would see an IMF deal as a positive development for Turkey," Reuters reported the head of emerging European sovereigns, Edward Parker, as saying. "But if one was not agreed they might be able to find other financing and it would not alone be enough for negative ratings action."

The Turkish government has been criticized over its reluctance to seal an IMF deal ahead of the upcoming bi-elections due to the spending curbs imposed by the Fund. Negotiations between the IMF and Turkey were suspended for 10 days, after a delegation from the Fund held talks with officials in Ankara in February.

The government recently said that the deal would be delayed if the Fund would not stop insisting on a couple crucial points, the contents of which have not been detailed.

Fitch also expected more downgrades in emerging Europe after cutting Russia's rating this week, warning that political risk was a mounting threat to creditworthiness in the region, the agency said.

Parker said that with nine countries in the region on a negative outlook and the financial crisis deepening, creditworthiness in a string of countries was deteriorating.

He also said that deepening economic pain and rising unemployment across the region heightened the risk of political instability and of government failures to take austerity measures out of fear of rising unrest.