07:04 GMT04 July 2020
Listen Live
    Get short URL
    0 43

    The S&P Global Ratings agency on Friday downgraded the long-term credit ratings of five Turkish financial institutions with a negative outlook, after lowering Turkey’s sovereign credit rating in the wake of an aborted coup in the country.

    MOSCOW (Sputnik) — S&P downgraded the ratings from “BB+” to “BB” for the Turkiye Is Bankasi AS (Isbank), Garanti Finansal Kiralama A.S. (Garanti Leasing), Yapi ve Kredi Bankasi A.S. (YapiKredi), Turkiye Garanti Bankasi A.S. (Garanti) and the Turkiye Vakiflar Bankasi TAO (VakifBank).

    According to the agency, the downgrade is linked to the political situation in Turkey becoming more fragmented after the coup attempt on July 15. The agency may revise the outlook on the ratings of the five banks to stable in a case of a similar revision in regard to Turkey's sovereign rating.

    The coup attempt took place in Turkey on July 15 and was suppressed the following day. Following the events, Turkish authorities introduced a state of emergency in the country, to last for a month and a half.

    On Wednesday, S&P downgraded Turkey’s rating to “BB” from “BB+” saying that the attempted coup has eroded the country's institutional checks and balances.


    S&P Downgrades EU Credit Rating to AA Over Risks Posed by Brexit
    Fitch to Review UK Credit Rating Citing Brexit Consequences
    UK Likely to Lose Top Credit Rating as #Brexit Campaign Wins - S&P
    Credit Rating Downgrade Looming for South Africa Amid Economic Turmoil
    banks, credit rating, coup, Turkey
    Community standardsDiscussion