Turkey’s Sovereign Ratings Affirmed

Ref: TR19CRA00-2 1 5 th November 2019

Turkey’s Sovereign Ratings Affirmed

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed Turkey’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘BB-’. CI Ratings has also affirmed the sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook for all ratings remains Negative.

RATING RATIONALE

The ratings take into account the country’s large external debt rollover needs combined with its relatively high sensitivity to shifts in investor sentiment, as well as the emergence of significant vulnerabilities in the banking sector and the associated increase in government contingent liabilities. Policy risk is also high and, in CI’s opinion, the government has yet to address the economy’s…