Standard & Poor’s (S&P) affirmed Turkey’s long-term sovereign credit rating at “B”, while adjusting its outlook to negative from stable.
The agency said in a statement, “The high Turkish current account deficit, limited usable reserves and high inflation make the outlook for the exchange rate vague.”
According to the agency, Turkey’s GDP will grow at the end of the year by just over 2%, compared to an increase of 5.6% last year. The agency also expects inflation in the country to remain high at 45% (average) this year.
She indicated that Turkey’s credit rating may be downgraded if pressure increases on financial stability and the Turkish budget, which may be due to the Turkish lira’s decline again.
At the same time, Standard & Poor’s could raise Turkey’s rating if monetary policy effectiveness improves and predictability emerges.
This article was originally published by RT.
