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The international rating agency Moody’s downgraded Turkey’s credit rating to B2 and maintained its negative outlook, the Associated Press reported.
A statement issued late Friday said the rating was downgraded from B1 to B2 due to the possible balance of payments crisis, institutional problems and erosion of fiscal reserves in Turkey.
“Turkey’s foreign exchange reserves have been declining for years in both gross and net terms, but are currently at their lowest level in decades as a percentage of gross domestic product due to failed attempts by the central bank to support the Turkish lira since early 2020, ”says the rating agency, quoted by BTA.
Moody’s attributes the decision to downgrade Turkey to “higher levels of geopolitical risk”, including relations with the United States and the European Union. NATO allies Turkey and Greece are in conflict over natural resources in the eastern Mediterranean, with both sides sending warships and air forces to the region.
Turkey
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