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Pimco Sees Risk of Turkey Outflows on Possible Downgrade

Pacific Investment Management Co., the world’s biggest bond manager, said Turkey faces an investor exodus should credit rating companies downgrade the nation’s debt amid warnings on political risks.

Turkey, which moved from junk for the first time in two decades last year, risks losing its Baa3 debt rating with Moody’s Investors Service after the ratings company said it has a negative outlook on the country. Two-year note yields have surged by 96 basis points to 9.21 percent over the past month, the second-biggest leap after Ukraine in Europe, Middle East and Africa, according to data compiled by Bloomberg.