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Shock to Turkey's economy from failed coup largely dissipated: Moody's

DAILY SABAH WITH AGENCIES
ISTANBUL
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People take over a tank near the Fatih Sultan Mehmet bridge during clashes with military forces in Istanbul on July 16, 2016.  (AFP Photo) People take over a tank near the Fatih Sultan Mehmet bridge during clashes with military forces in Istanbul on July 16, 2016. (AFP Photo)

The shock to Turkey's economy following the July 15 failed coup attempt has largely dissipated, international ratings agency Moody's said Wednesday.

"Turkey's problems remain longer-term however," Alastair Wilson, Moody's managing director of Global Sovereign Risk, said, pointing to the country's policymaking drives and the economy's sensitivities to global interest rate shifts.

Moody's put Turkey's credit rating on review for a possible downgrade to junk status on July 18.

Both Fitch and Moody's rate Turkey at the lowest investment grade. This allows its bonds to be bought by conservative funds that require a country to be classed investment grade by at least two of the major agencies.

The agency said it will conclude Turkey's rating review with the next month.

Turkey's government has said the defeated coup, which left over 240 people killed and nearly 2,200 injured, was organized by followers of Fetullah Gülen, who has lived in self-imposed exile in the U.S. state of Pennsylvania since 1999, and his FETÖ network.

Gülen is also accused of a long-running campaign to overthrow the state through the infiltration of Turkish institutions, particularly the military, police and judiciary, forming what is commonly known as "the parallel state".

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