Turkey's financial crisis deepens - S&P a

Turkey’s financial crisis deepens – S&P a


Following an in-depth analysis, the financial rating agency S&P Global Ratings further downgraded Turkey’s rating for local currency debt in the “junk” category, and confirmed its foreign currency rating to “B plus”.

In addition, about this reality, Bloomberg reports, thus, the perspective associated with the rating of Turkey is a negative one, which means that a new downgrade is possible in the next period, quotes Agerpres.

Specifically, S&P downgraded Turkey’s rating for local currency debt to “B plus”, which is four steps below the “investment grade” level, citing the impact of rising energy prices following Russia’s invasion of Ukraine. Turkey’s currency rating is equal to that of Bolivia and Bahrain.

The analysis shows, “The negative effects of the Russian-Ukrainian military conflict, including rising food and energy prices, will further weaken Turkey’s already weak balance of payments and exacerbate rising prices.

We expect the average inflation rate to be 55% this year, the highest of all states to which S&P gives a sovereign rating, ”reads the statement from the financial rating agency S&P Global Ratings.