The international rating agency Fitch Ratings downgraded Turkey’s credit rating to “B +” from “BB-“, stating that the outlook of the country is negative.
“Turkey’s expansionary policy mix (including deeply negative real interest rates) could consolidate high inflation, increase public finance exposure to exchange rate devaluation and inflation, and ultimately erode domestic confidence and “Pressures on international stocks,” the Fitch report said.
The report also states that the policy pursued by the Turkish government is not expected to reduce inflation.
The report predicts it will average 41% in 2022 and 28% in 2023, the second highest among all Fitch-rated countries.
The Fitch report also showed a negative outlook for Turkey’s debt, which means it could face further downgrades in the future.
Source: Capital
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