the Turkish Authorities questioned the impartiality of rating agencies when making decisions on the assessment of the economies of other countries, mainly Turkey. This was stated by Prime Minister Binali Yildirim, commenting on the lowering of the credit rating of the Turkish state to speculative grade Ba1 Agency Moody’s, Reuters reports.
“We do not believe that these decisions carry a high level of impartiality. We are sure that they are trying to create a certain image of the Turkish economy,” he said.
Earlier Moody’s rating Agency downgraded Turkey’s sovereign rating to “junk” level of Ba1 with a stable Outlook. To decrease long-term rating of Turkey increased risks associated with the need to increase external borrowing. In addition, as explained by the Agency, an important factor was the weakening metrics that had previously supported the credit rating, economic growth and sustainability of the institutions.
the revision of Turkey’s rating Agency announced in July after the military coup. Moody’s then stated the need to recalculate risks in order to assess the consequences of a failed attempt of a military coup for the Turkish economy in the medium term. The Agency experts noted that the insurgency may have a significant negative impact on the economic situation in the country.
No comments:
Post a Comment