Moody’s keeps Turkey’s credit rating as B2 with negative outlook

Moody’s, the international credit rating agency, has confirmed Turkey’s credit rating as ‘B2‘ and left its rating outlook as ‘negative‘. The reason for keeping note outlook negative was cited as “unforeseen policies”. Moody’s also underlined that the inflation rate in Turkey would rise further and the loss of purchasing power would increase.

Moody’s shared following as well: “The current economic policy in the coming months will lead to higher inflation, erode the purchasing power of households and the possibility of a sharp slowdown in growth will increase, despite low interest rates.”

Another credit rating agency, Fitch, also confirmed Turkey’s credit rating as “BB-“, while the stable rating had changed its outlook to negative.

The Turkish Statistical Institute (TURKSTAT) on the other hand announced official inflation of 21.31 percent yesterday. This figure is also the peak of the last three years. However,iIndependent research institutions have calculated inflation figure as 58.65 percent.