Turkey’s Sovereign Ratings Affirmed Rating Action

Ref: TR20CRA00-02 2 7 November 20 20

Turkey’s Sovereign Ratings Affirmed 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, CI Ratings has affirmed the Sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook for the ratings remains Stable.

Rating Rationale

The ratings and outlook reflect CI’s expectation that the recent tightening of monetary policy will contribute to a narrowing of the economy’s external imbalances which have increased markedly since the start of 2020. At the same time, CI notes that a renewed loosening of monetary policy – which is not envisaged in our baseline scenario – would be an important downside risk to the ratings as it would further aggravate the…