İstanbul, Mar 20 (DHA) – Ratings agency Moody’s late on Friday cut its outlook on Turkey’s rating to “negative” as risks to the country’s credit profile have “risen materially” in recent months.
The ratings agency noted that the “tense political environment” following the failed coup attempt July 15, 2016 has “persisted for longer than expected” and has “undermined the country’s administrative capacity and damaged private sector confidence.”
“Partly as a consequence, Turkey has experienced a further slowdown in growth,” Moody’s added.
Moody’s rates Turkey at Ba1. It previously had a “stable” outlook on the sovereign.
The ratings agency also affirmed its “junk” non-investment grade of Ba1 on Turkey’s debt, saying its economic and fiscal strength served as a buffer against the risks posed by its diminished institutional state.
It also cited the economy’s “intrinsic dynamism.”
Fitch Ratings in January cut Turkey’s last remaining investment grade, when it downgraded it over widening concern about politics and monetary policy.