Turkey’s Ratings Affirmed, Outlook Remains Negative
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Summary
Ref: TR2 2 CRA00-0 1 27 May 2022
Turkey’s 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+’, while the 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 on Turkey’s LT FCR and LT LCR remains Negative.
Rating Drivers
The ratings reflect elevated external liquidity pressures and large external financing needs, exacerbated by global monetary policy tightening and increasing risk aversion, sharply higher hydrocarbon prices, and other adverse spillovers from the war in Ukraine. The ratings also take into account Turkey’s low coverage of external debt falling due by gross official foreign exchange , in addition to the high foreign currency…