Turkey’s Outlook Revised to Negative

Ref: TR21CRA00-02 26 November 20 2 1

Turkey’s Outlook Revised to Negative

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on Turkey’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) to Negative from Stable. At the same time, the sovereign’s LT FCR and LT LCR have been affirmed at ‘B+’, while its Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) have been affirmed at ‘B’.

R ating Rationale

The revision of the outlook to Negative reflects CI’s expectation that the recent loosening of monetary policy and the accompanying deterioration in international investor sentiment have increased the likelihood that key risks associated with the country’s underlying economic vulnerabilities will materialise, with potentially adverse consequences for financial stability and, ultimately,…