(MENAFN) Fitch Ratings International has warned of negativity in Turkey's economy over the next phase after applying a presidential system with a new government.
Turkey's Issuer Default Rating (IDR) has been reduced by the agency from 'BB+' to 'BB', presenting a negative outlook and entrenching the Turkish sovereign debt position further into the category of speculative investments.
In a statement, Fitch noted "economic policy credibility has deteriorated in recent months and initial policy actions following elections in June have heightened uncertainty."
Fitch then suggested "this environment will make it challenging to engineer a soft landing for the economy."
It added "Fitch believes downside risks to macroeconomic stability have intensified owing to the widening in the current account deficit (CAD), more challenging global external financing environment, jump in inflation and the impact of the plunge in the exchange rate on the private sector, which has significant foreign currency-denominated debt."
MENAFN1607201800450000ID1097165863
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.