21 July, AtoZForex – It seemed like nothing could already beat the shock of Brexit. However, the world faced another unexpected turn in its history last week. Right after the failed coup attempt in Turkey, Standard & Poors downgraded the country’s credit rating. S&P cuts Turkey credit rating saying that last week’s coup has shaken country’s economy and investment environment.
S&P cuts Turkey credit rating: why?
The Standard & Poor’s global rating firm has reviewed Turkey’s rating in May. It signaled on Monday about an unscheduled review as an assessment of the failed coup consequences. Later on, on Wednesday the firm said that growing political fragmentation and polarization were weakening the country’s economy. The erosion of checks and balances were adding up to that. The rating now is double-B, with a negative outlook. It means that additional downgrades might follow for Turkey.
Moody’s Investor service, which also hold Turkey at investment grade, also said this Monday that it’s assessing the impact of the failed coup attempt for the possible downgrade.
As S&P cuts Turkey credit rating, the Turkish lira weakened against the dollar. Meanwhile, the tweets from the account of Bülent Gedikli, Turkey’s President’s advisor, were defending country’s economic health and called the fact that S&P cuts Turkey credit rating illogical.
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