Rating’s agency S&P has cut its sovereign debt rating on Turkey further into junk territory on Tuesday.
The decision to cut Turkey’s rating to “BB-/B” from “BB/B” was not part of its regularly scheduled reviews of the country. The agency cited a deepening concern regarding the outlook for inflation amid a sell-off in the lira currency, according to Reuters.
“The downgrade reflects our concerns over a deteriorating inflation outlook and the long-term depreciation and volatility of Turkey’s exchange rate,” said S&P in a statement. “The rating action also reflects our concerns over Turkey’s deteriorating external position and rising distress in the externally leveraged private sector.”