Turkey Cut to Junk as Moody’s Concludes Its Post-Coup Review
- Erdogan criticized rating companies for ‘political’ decisions
- Moody’s cites lower growth, increased risk of financing shock
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Turkey’s sovereign credit rating was cut to junk by Moody’s Investors Service, which concluded a review initiated after an unsuccessful coup attempt on July 15.
Moody’s cited rising risks related to Turkey’s external financing needs and a weakening in its credit fundamentals as economic growth slows. The rating was cut to Ba1 from Baa3, leaving Fitch Ratings as the only major ratings company to keep Turkey at investment grade.