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 Moody ’s has downgraded Turkey because of fears that Tayyip Erdogan ’s government is on course for a default . Standard & Poor ’s and Fitch Rating have already lowered the country ’s sovereign debt profile . The country ’s debt has now fallen below investment grade . Moody ’s noted 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 Moody ’s conclusion does not agree with the country ’s fundamental indicators and questioned the agency ’s impartiality .