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BRIEF-S&P Lowers Turkey Ratings On Deteriorating External Performance, Higher Inflation

May 1 (Reuters) - S&P Global Ratings:

* S&P SAYS TURKEY RATINGS LOWERED ON DETERIORATING EXTERNAL PERFORMANCE AND HIGHER INFLATION; OUTLOOK STABLE

* S&P LOWERS TURKEY’S SOVEREIGN CREDIT RATING TO BB- FROM BB; RAISES OUTLOOK TO STABLE FROM NEGATIVE

* S&P SAYS TURKEY’S MACROECONOMIC IMBALANCES, MAINLY A DETERIORATING CURRENT ACCOUNT AND FISCAL DEFICIT, AS WELL AS HIGH INFLATION, ARE BUILDING UP

* S&P SAYS EXCHANGE-RATE DEPRECIATION AND VOLATILITY ARE A RISK TO TURKEY’S FINANCIAL STABILITY

* S&P SAYS SIGNS OF DISTRESS IN TURKEY’S PRIVATE SECTOR ARE STARTING TO SHOW; CAPITAL OUTFLOWS AND THE LIRA’S DEPRECIATION MAY ACCELERATE THIS TREND

* S&P SAYS LOWERED UNSOLICITED LONG-TERM NATIONAL SCALE RATING ON TURKEY TO ‘TRAA’ FROM ‘TRAA+’ AND AFFIRMED ‘TRA-1’ SHORT-TERM NATIONAL SCALE RATING

* S&P SAYS TURKEY RATINGS DOWNGRADE REFLECTS CONCERNS OVER DETERIORATING INFLATION OUTLOOK, LONG-TERM DEPRECIATION& VOLATILITY OF TURKEY’S EXCHANGE RATE

* S&P SAYS RATING ACTION ON TURKEY ALSO REFLECTS CONCERNS OVER ITS DETERIORATING EXTERNAL POSITION, RISING DISTRESS IN EXTERNALLY LEVERAGED PRIVATE SECTOR

* S&P SAYS RATING ACTION ON TURKEY ALSO REFLECTS VIEW OF WEAKENING IN TURKEY’S FISCAL POSITION AS RESULT OF CONTINUED PUBLIC, QUASI-PUBLIC STIMULUS TO ECONOMY

* S&P SAYS STABLE OUTLOOK ON TURKEY BALANCES RISKS FROM WHAT S&P SEES AS OVERHEATING ECONOMY AND GROWING MACROECONOMIC IMBALANCES

* S&P SAYS COULD LOWER TURKEY RATINGS IF EXTERNAL FINANCING CONDITIONS, TURKEY'S EXCHANGE RATE DETERIORATE FURTHER, INCREASING VULNERABILITIES IN ITS PRIVATE SECTOR Source text: (bit.ly/2FBmX5C)

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