Moody’s credit rating has downgraded Turkey amid worries that the authoritarian government of Recep Tayyip Erdoğan is headed towards a default due to a balance of payment risks. Moody’s has followed the lead of Standard & Poor’s and (B+) and Fitch Rating (BB) in downgrading Turkey’s sovereign risk profile, which is rapidly sliding further into “junk” territory. By downgraded Turkey’s long-term debt rating from Baa3 to B1, this now puts mounting pressure on the Turkish national currency, the...
Credit rating agency Standard & Poor’s has downgraded Turkey because of fears Recep Tayyip Erdogan’s government is on course for a default. Moody’s and Fitch Rating have already downgraded the country’s sovereign risk profile. The country’s debt has now fallen below investment grade. Standard & Poor’s acknowledged that Turkey’s economy has shown resilience, but said the country depends on external capital inflow, making it vulnerable to economic volatility. Turkey’s finance ministry said Standard & Poor’s conclusion does not agree with the country’s fundamental indicators and questioned the agency’s impartiality.