Wednesday 02, May 2018 by Jessica Combes

S&P cuts Turkey's rating deeper into 'junk'

 

Rating’s agency S&P has cut its sovereign debt rating on Turkey further into junk territory on Tuesday.

The decision to cut Turkey’s rating to “BB-/B” from “BB/B” was not part of its regularly scheduled reviews of the country. The agency cited a deepening concern regarding the outlook for inflation amid a sell-off in the lira currency, according to Reuters.

“The downgrade reflects our concerns over a deteriorating inflation outlook and the long-term depreciation and volatility of Turkey’s exchange rate,” said S&P in a statement. “The rating action also reflects our concerns over Turkey’s deteriorating external position and rising distress in the externally leveraged private sector.”

 

  

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