International credit rating agency Moody’s has downgraded Turkey’s long-term foreign currency credit rating from ‘B1 ‘to ‘B2′, leaving the rating outlook at “negative”.
The agency said Turkey’s external fragility could possibly lead to a balance of payments crisis and its fiscal buffers were eroding. It also noted that 3 key factors had played a role in lowering Turkey’s credit rating.
-Balance of payments with geopolitical risks,
-Financial buffers and
-Risks to credit profile
In the statement that said 3 main factors had played a role in lowering the country’s credit rating, 3 above mentioned points were noted.
Moody’s, which went to an off-calendar assessment of Turkey’s credit rating, had previously announced that there were no updates to Turkey’s credit rating and rating outlook on the date announced as June 5.
