Fitch says Turkey's investment rating is in danger
Analyst James McCormack of the international credit rating agency Fitch has said that the body foresees the risk of lowering Turkey's investment grade credit rating.
Speaking at a conference in London, McCormack, Fitch's global sovereign rating manager, said they see a risk of downgrading Turkey's investment grade credit rating.
McCormack noted they have a team operating in Turkey, adding that the negative outlook pointed to an increase in risks in Turkey.
Fitch Ratings affirmed Turkey's sovereign rating at the investment grade level of BBB- in a statement on Aug. 19 last year and downgraded its outlook to "negative" from "stable" after the July 15 coup attempt.
Fitch is expected to revise Turkey's sovereign rating and outlook on Jan. 27.
Bülent Gedikli, chief adviser to President Recep Tayyip Erdoğan, responded to Fitch on Twitter, saying, "Fitch announced Turkey's investment grade credit score is at stake. The investment grade is undoubtedly important, but decisions made during the weekly, monthly, and transitional periods of the Turkish economy will not be healthy. I think the markets will relax after the constitutional referendum process is over. Why? Because perceptions are manipulated due to political risks. This is a democratic process."
He added, "Moreover, Turkey is making significant foreign policy moves that minimize geopolitical risks. The statements made in a threatening manner about Turkey through credit ratings reveal the aim of many schemes plotted on our economy after July 15. We will overcome these days; we will see better days as nation. As long as we embrace our country."
Speaking at a conference in London, McCormack, Fitch's global sovereign rating manager, said they see a risk of downgrading Turkey's investment grade credit rating.
McCormack noted they have a team operating in Turkey, adding that the negative outlook pointed to an increase in risks in Turkey.
Fitch Ratings affirmed Turkey's sovereign rating at the investment grade level of BBB- in a statement on Aug. 19 last year and downgraded its outlook to "negative" from "stable" after the July 15 coup attempt.
Fitch is expected to revise Turkey's sovereign rating and outlook on Jan. 27.
Bülent Gedikli, chief adviser to President Recep Tayyip Erdoğan, responded to Fitch on Twitter, saying, "Fitch announced Turkey's investment grade credit score is at stake. The investment grade is undoubtedly important, but decisions made during the weekly, monthly, and transitional periods of the Turkish economy will not be healthy. I think the markets will relax after the constitutional referendum process is over. Why? Because perceptions are manipulated due to political risks. This is a democratic process."
He added, "Moreover, Turkey is making significant foreign policy moves that minimize geopolitical risks. The statements made in a threatening manner about Turkey through credit ratings reveal the aim of many schemes plotted on our economy after July 15. We will overcome these days; we will see better days as nation. As long as we embrace our country."