MOSCOW (Sputnik) — Standard & Poor's downgraded Turkey’s sovereign credit rating on Wednesday, citing the failed coup and fallout it will have on the nation’s externally-leveraged economy.
"We are lowering our foreign and local currency sovereign credit ratings on Turkey to 'BB/B' and 'BB+/B', respectively, from 'BB+/B' and 'BBB-/A-3'," the credit rating agency’s statement read.
"The downgrade reflects our view that following the attempted coup on July 15, Turkey's political landscape has fragmented further. We believe this will undermine Turkey's investment environment, growth, and capital inflows into its externally leveraged economy," it said further.
S&P predicted that the national economy would deteriorate further if political uncertainty continues to erode institutional checks and balances and constrains capital inflows.
