August 16, 2022
Türkiye’s sovereign credit rating has been lowered by one notch by Moody’s Investors Service to B3 with a stable outlook, placing it six notches below investment grade, according to the rating agency.
The Erdogan administration’s more unconventional policies and the mounting pressure on the balance of payments make it unlikely that macroeconomic stability will be restored, according to Moody’s.
According to ratings from various credit rating agencies, Türkiye is rated by Fitch Ratings at B/Negative, which is five notches below investment grade, and by Standard & Poor’s at B+/Negative, which is four notches below investment grade.
Due to the lack of liquidity throughout the summer vacation period, August is typically characterized by choppy markets. On the other hand, August this year has so far been very good for the financial sector (as positive as possible amid the global tightening).
However, there is no assurance that the second half of August will proceed in the same way. The atmosphere might shift. The Fed’s open market committee is currently anticipated to announce another 50bp rate hike on September 21.
Source: BNE Intellinews
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