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The credit rating Agency Fitch downgrades the credit rating of Turkey to junk level down.
- The classification provided Fitch with a stable perspective, a further reduction is not initially provided.
- Fitch justified this step with the “political and security-relevant events” of the last few months.
Aview of the political crisis in Turkey and the weakening of the currency have issued two US credit rating agencies the credit rating of the country is a bad witness.
The company, Fitch downgraded the credit rating for Turkey on Friday on the Note of BB+ and thus to the first stage of the junk levels down. The classification provided Fitch with a stable perspective, a further reduction is not initially provided.
Fitch justified this step with the “political and security-relevant events” in the recent past, which have weakened the economic development of the country.
Specifically, the rating Agency cited the crackdown by the Turkish authorities against alleged government opponents following the coup attempt in July. This had affected “some economic actors”.
Standard and Poor’s corrected the Outlook
Fitch was concerned also about the proposed constitutional reform in Turkey, President Recep Tayyip Erdogan with the widest powers to equip. The Turkish authorities, it is also able to get “previous external vulnerabilities” in the handle, including the Turkish Lira suffering. The reduction in the monetary reserves to make Turkey vulnerable to shocks from the outside.
the rating Agency Standard and Poor’s argued with the weak Turkish currency for their re-evaluation of Turkey’s credit rating. S&P lowered its Outlook on Friday, from “stable” to “negative”. With the rating BB credit rating is already at junk level, a further reduction is not excluded in the near future.
In Turkey, there were “growing pressures for political decision-makers,” Inflation and currency to mitigate the problems, argued S&P.
This could weaken the financial position of the companies and banks and economic growth undermined. The rating Agency also sees weaknesses in the Central Bank of Turkey, the fall of the currency against the Dollar to curb.