Moody’s lowers Turkey’s rating to B2

PARIS, Sept 12, (AP): Credit ratings agency Moody’s has cut Turkey’s debt ratings and said it maintained a negative outlook on the country.

Moody’s Investors Services said in a statement late Friday that it downgraded the Turkish government’s issuer and senior senior unsecured debt ratings to B2 from B1. It cited a potential balance of payment crisis, institutional problems and the erosion of fiscal buffers in Turkey.

“Turkey’s foreign-currency reserves have been drifting downward for years on both a gross and a net basis but are now at a multi-decade low as a percentage of GDP because of the central bank’s unsuccessful attempts to defend the lira since the beginning of 2020,” the ratings agency said.