Erdogan Threatens to Cut Ties With Two Ratings Companies

Turkish President Recep Tayyip Erdogan threatened to cut ties with two ratings companies that he accused of biased analysis and trying to “collapse” the country’s economy.

Turkey signed a rating agreement with Fitch and Moody’s in January 2013, replacing a previous deal with Standard & Poor’s and Moody’s. Erdogan, without naming the agencies involved in the current agreement, said Turkey may end its accord with the companies because they are not rating Turkey objectively. He gave no further details.

“We are paying them,” Erdogan said. “In the period ahead, Turkey would cut ties with these two as well because we did not grow our economy with them. The statements they are making about Turkey amounts to an effort to collapse a country economically, which they could not collapse politically.”

Fitch Rating and Moody’s Investors Service have been criticized over the past two days by the country’s political and economic leadership, including Deputy Prime Minister Ali Babacan who said yesterday that Turkey has been unable to get the credit rating it deserves. Rating firms must objectively assess Turkey and operate with bigger teams to understand the country, Babacan said yesterday.

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