The S&P further downgraded Turkey’s credit rating to local currency in the “junk” category, while maintaining a negative outlook for the country and confirmed the rating in foreign currency, according to Bloomberg.
The house cut its rating of Turkish debt in local currency by one notch to B +, four levels below the investment grade, citing the impact of the spike in energy prices from Russia’s war in Ukraine. It maintained its foreign exchange rating at B +, at the same level as Bahrain and Bolivia.
“The effects of the Russia-Ukraine military conflict, including rising food and energy prices, will further weaken Turkey’s already weak balance of payments and worsen inflation,” S&P said in a statement. “The latter is on track to reach an average of 55% in 2022, the highest level of all the states we evaluate.”
Source: Capital
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