Credit rating agency Moody’s has downgraded Turkey because of fears Recep Tayyip Erdogan will use the coup to consolidate power.
Credit rating agency Moody’s has downgraded Turkey because of fears Recep Tayyip Erdogan’s government is on course for a default. Standard & Poor’s and Fitch Rating have already downgraded the country’s sovereign risk profile. The country’s debt has now fallen below investment grade. Moody’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 Moody’s conclusion does not agree with the country’s fundamental indicators and questioned the agency’s impartiality.