Turkey – Ratings Affirmed; Outlook Remains Negative
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Summary
Ref: TR2 2 CRA00-0 2 2 5 November 2022
Turkey – Ratings Affirmed ; Outlook Remains Negative
Rating Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Turkey’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘B+’ . At the same time, t he sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) have been affirmed at ‘B’. T he Outlook remains Negative.
Rating Drivers
The ratings reflect elevated external liquidity pressures and large external financing needs, exacerbated by global monetary policy tightening a nd increasing risk aversion, high hydrocarbon prices, as well as elevated policy risks. The ratings also take into account Turkey’s low coverage of external debt falling due by gross official foreign exchange (FX) reserves, in addition to the still high – albeit declining – foreign…