Turkey Gets Unprecedented Downgrade, Crisis Warning From Moody’s
- Turkey’s credit rating cut to B2 from B1, outlook negative
- Moody’s cites external vulnerabilities, eroding fiscal buffers
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Turkey had its debt rating cut deeper into junk by Moody’s Investors Service, which warned of a possible balance-of-payments crisis in assigning the lowest grade it’s ever given to the country.
The sovereign credit rating was cut to B2, five levels below investment grade and on par with Egypt, Jamaica and Rwanda. The company kept a negative outlook on the rating, saying fiscal metrics could deteriorate faster than currently expected.