May 1, 2018 / 9:44 PM / 2 years ago

In unexpected move, S&P cuts Turkey's rating deeper into 'junk'

ISTANBUL (Reuters) - In an unexpected move, Standard & Poor’s cut its sovereign debt rating on Turkey further into junk territory on Tuesday, citing widening concern about the outlook for inflation amid a sell-off in the lira currency.

S&P said the ratings decision - it cut to “BB-/B” from “BB/B” - was not part of its regularly scheduled reviews of Turkey, reflecting what it said were growing concerns.

“The downgrade reflects our concerns over a deteriorating inflation outlook and the long-term depreciation and volatility of Turkey’s exchange rate,” it said in a statement.

“The rating action also reflects our concerns over Turkey’s deteriorating external position and rising distress in the externally leveraged private sector.”

Reporting by David Dolan; Writing by Ali Kucukgocmen; Editing by Peter Graff

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below