S&P Lowers Outlook for Turkey’s Debt Rating to Negative

  • S&P cites deposit compensation plan, earthquake costs
  • Also cites ‘modest’ FX reserves, ‘unrestrained inflation’

Turkey's President Recep Tayyip Erdogan

Photographer: Akos Stiller/Bloomberg
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S&P Global Ratings lowered its outlook for Turkey’s sovereign credit rating to negative from stable, citing a series of challenges including earthquake-recovery costs and uncontrolled inflation.

The rating company affirmed its B rating for Turkey, leaving it on par with Egypt and Kenya.