The American rating agencies Standard & Poor’s (S&P) and Moody’s on Friday, their rating of Turkey decreased. The British Fitch doesn’t even take ratingbeslissing, but to know that the measures of the government of Recep Tayyip Erdogan after the fall of the Turkish lira ‘inadequate’.
S&P takes credit rating of Turkey from ‘BB-’ to ‘B+’, but keeps the prospect of “stable”. ‘We think that the significant weakening of the lira in adverse tax consequences, while also the balance sheets of companies and the domestic banks even more under pressure’, says the.
“We predict next year a recession. The inflation will be during the next four months, peaks at 22 percent, by the middle of 2019 under 20 percent down, ” says the rating agency. He also pointed out that the response of the Turkish policy-makers on the economic overheating ‘for now’.
Moody’s says its assessment of Turkey downwards, from ‘Ba3’ to ‘Ba2’ with a ‘negative’ perspective. “The main reason for the decrease of the rating is the continued weakening of the Turkish public institutions and the related reduction of the predictability of the Turkish policy-making’, says the institution.
‘Lack of clear plan’
Moody’s notes the ‘concerns about the independence of the central bank “in Turkey and” the lack of a clear and credible plan’ to the financial problems. The rating agency says that the inflation ‘is likely to continue being powered by the current conditions, and that also the economic growth.
Fitch applied its rating yet, but sets like S&P and Moody’s is not satisfied with the measures taken by the Turkish government. ‘Turkey’s incomplete response to the depreciation of the lira in itself has little chance of the currency and the economy is durable to stabilize, ” says the rating agency. Also Fitch points include the importance of an independent central bank.