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LONDON, Sept 22 (Reuters) - Political tensions in Turkey are preventing the country from acquiring coveted investment grade status, Fitch's head of sovereign ratings said on Wednesday.
David Riley, Group Managing Director Sovereigns at Fitch said the country's track record of managing tensions between pro-Islamist and secularist forces remained "relatively short" despite robust economic growth of recent years.
"Turkey is knocking on the door of investment grade. The kind of concern is that there is political tension," Riley said at a Fitch conference.
Turkey has a BB+ rating from Fitch with stable outlook but analysts have said the country's strong economic fundamentals merit an investment grade rating of at least BBB-.
"One of the things that makes us more hesitant is that we would like to see stronger institutions," said Riley.
Relations between Turkey's secularist military establishment and Islamist-rooted AK Party remain fraught, little improved by the ruling party's victory this month in a referendum on constitutional reform.
Prime Minister Tayyip Erdogan's plans to draw up a new constitution has stoked fears among secularists that modern Turkey's official secularism would eventually be eroded.
Riley said the coming general elections -- due within 10 months -- would likely intensify such tensions.
"Elections come and go. There is a more existential debate about the vision of Turkey," he said.
Moody's has Turkey on a Ba2 rating with a stable credit outlook while Standard & Poor's has the country on a BB rating, two notches below investment grade.
(Reporting by Sebastian Tong; editing by Patrick Graham)