Moody’s to review Turkey’s credit rating for downgrade

Decision comes amid ‘mounting uncertainty regarding future direction of macroeconomic policy’

By Kubra Chohan

ANKARA (AA) - Credit ratings agency Moody’s announced Friday that it would review Turkey’s credit rating to decide if it should be downgraded.

In a written statement, Moody’s said its “decision to place the current [Ba2] rating under review reflects mounting uncertainty regarding the future direction of macroeconomic policy”.

The statement said Turkey’s “already vulnerable external position” will “raise the risk of severe pressures on Turkey's balance of payments to a level that is no longer consistent with the current rating”.

Moody's on March 8 downgraded Turkey's sovereign rating to 'Ba2' from 'Ba1' and changed its outlook to "stable" from "negative".

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