Rating agency Standard & Poor’s says Turkey to “high-risk” country – ZEIT ONLINE

The rating agency Standard & amp; Poor’s (S & P), Turkey has been classified as “high risk” country. Previously, investors had been warned of a “moderately high risk”. In the risk assessment of a country, it is among other things to the creditworthiness and factors that may affect the business and investment in the country. The hazards may be economic, institutional or legal nature or resulting from the financial markets.

Last month, S & amp had; P already downgraded the creditworthiness of Turkish government bonds to BB and the outlook to “negative” set. This implies a further decline in the creditworthiness. The agency justified the assessment of the consequences of the military coup and the increasing polarization of Turkish society.

The Turkish government filed a complaint about the “incorrect decisions” of international rating agency. President Recep Tayyip Erdoğan criticized as “politically motivated” and spoke of a “Turkish antagonism”. directed at the agency the President in Ankara said the Turkish parliament: “We’re not your member, what is that to you, who are you?” Also, the stock market had suffered from the coup attempt. Erdoğan announced yet: The Turkish economy will not collapse. In the current situation it is adequately prepared.

Last week also announced Deputy Prime Minister Mehmet Şimşek on measures against the rating agency. There is no reason to lower the credit rating of Turkey, he said.

assessments of rating agencies may affect the terms on which borrowing countries in the international financial money. The worse the creditworthiness, the higher is usually the interest that must be paid.