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Turkey’s credit note could be downgraded by the end of the month by Fitch

 

Turkey’s credit note could be downgraded by the end of the month

James McCormack who works at the international credit agency, Fitch Ratings, stated that there is a probability of downgrading of Turkey’s credit score by the end of the month.

After the coup attempt, Turkish government is known by his crusade to credit rating agencies after receiving downgrades by them. Recently, Fitch has warned Turkey about lowering their score.

Other two major credit agencies Moody’s and S & P’s already junked Turkey’s credit ratings in 2016. Third credit agency seems to be preparing to do for same.

McCormack who spoke to Bloomberg HT signaled that Turkey’s credit ratings could be lowered at the end of the month after Fitch’s team finishes their studies in Turkey.

Fitch is going to review Turkey’s lowest investment note BBB- on January 27.  Fitch is currently holding a negative view of Turkey.

Warnings

Another international credit rating agency, Moody’s, has warned Turkey in their new report that “Turkish bank’s profitability could seriously be affected by the rise of nonperforming loans.”

Turkish government declared Moody’s warnings as an “attack” and said the report is  “null and avoid”.

Turkish Central Bank had decreased the required reserve ratios of the banks after Dollar broke the records due to deliberations on constitution.

Last, an Investment Bank, Morgan Stanley, dropped Turkey’s growth forecast in 2016-2018.

In October, Hurriyet’s columnist on financial issues Erdal Saglam predicted Fitch will downgrade Turkey’s rating.

Oznur Kaya

Diken

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