empty
 
 

2021.12.0304:41:00UTC+00Fitch Lowers Turkey's Sovereign Rating Outlook

Fitch Ratings downgraded the outlook on Turkey's sovereign ratings to Negative from Stable, citing various risks to macroeconomic and financial stability and potential external financing pressures.

The rating agency said the central bank's premature monetary policy easing cycle and the prospect of further rate cuts or additional economic stimulus ahead of the 2023 presidential election have led to a deterioration in domestic confidence, reflected in a sharp depreciation of the Turkish lira and rising inflation.

These developments create risks to macroeconomic and financial stability and could potentially re-ignite external financing pressures, Fitch noted.

Further, the agency viewed that the proximity of the 2023 electoral cycle will have an impact on policy direction and expectations of economic actors.

The sovereign ratings were affirmed at 'BB-'. The credit ratings reflect weak monetary policy credibility, high inflation, low external liquidity in the context of high financing requirements and geopolitical risks.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback