Two Large Credit Rating Agencies Are Lowering Credit Status Turkey
Two Large Credit rating agencies are Lowering credit Status Turkey. The major credit rating agencies American Moody’s and Standard & Poor’s (S & P) have lowered the credit status of Turkey.
The two companies came out separately with reports.
According to S & P, Turkey will end up in a recession next year. Turkey already had a so-called junk status with the rating agency.
It means that the risk of defaults is considered to be very large. Investment in Turkey’s government bonds is seen as pure speculation.
The rating at S & P is now going down even further, from BB to B + with a stable forecast.
Moody’s also came up with a new report and set the Ba2 rating on Ba3 with an adverse prognosis.
Moody’s thinks that a quick solution to the current unrest will become increasingly difficult.
Fitch lowered Turkey status earlier
Fitch, the third largest credit company, already reduced the credit status of Turkey.
The bureau said on Friday that it feared that the economic turbulence would continue in the coming period.
However, the agency did not come up with a new credit assessment.
The Turkish economy has been in heavy weather for some time.
The violent diplomatic crisis with the United States comes once more.
US and Turkey in a clinch for American pastor
The tensions between the two countries have everything to do with the detention of the American preacher Andrew Brunson.
The US takes the specific measures against Turkey because the state refuses to release the predecessor.
Turkey suspects Brunson of terrorist activities, but according to the US, there is no proof for this.
As a result of the American sanctions and the threat of more punitive measures,
the Lira has fallen sharply in value, and the sinking currency is affecting, among other things, the banking sector.
The lira crisis, in turn, led to pressures on the global financial markets.