Breaking….S&P downgrades Turkey’s outlook

Breaking….S&P downgrades Turkey’s outlook.

Just in from S&P:

‘Standard & Poor’s Ratings Services today revised the outlook on Turkey’s long-term foreign and local currency sovereign credit ratings to stable, from positive. At the same time, we affirmed our ‘BB/B’ foreign currency and ‘BBB-/A-3′ local currency long- and short-term sovereign credit ratings on Turkey. We also affirmed the Turkey long- and short-term national scale ratings at ‘trAA+/trA-1′. The ’3′ recovery rating and ‘BBB–’ transfer and convertibility (T&C) assessment remain unchanged.

Less-buoyant external demand and worsening terms of trade (the price of exports compared to imports) have, in our view, made economic rebalancing more difficult, and have increased the risks to Turkey’s creditworthiness given its high external debt and the state budget’s reliance on indirect tax revenues. We have revised the outlook on Turkey’s long-term sovereign credit ratings to stable from positive, reflecting our view that the ratings are likely to remain at the current level during the next 12 months.’

Ah yes, that’ll be those Erdaganomics again, then. You read it here first.

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