(Reuters) - Standard & Poor’s downgraded Turkey’s credit rating outlook to “negative” from “stable” on Friday, citing risks of a hard economic landing.
"Turkey's policy environment is becoming less predictable, and that this could weigh on the economy's resilience and long-term growth potential," the ratings agency said. (link.reuters.com/dyx66v)
S&P reaffirmed its “BB+” long-term and “B” short-term foreign currency sovereign credit ratings. However, the agency said there was a likelihood that it would lower the credit ratings within the next 12 months.
Turkey posted a cash deficit of 530 million lira ($240 million) last month and a primary cash surplus of 3.26 billion lira, Treasury data showed on Friday.
The country’s recent primary budgetary surpluses reflect a fiscal windfall from rapid demand growth, rather than a particularly tight fiscal policy, S&P said.
Reporting by Dasha Afanasieva and Narottam Medhora; Editing by Maju Samuel