Fitch holds Turkey rating at BB, outlook negative

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Ratings agency Fitch on Friday kept Turkey’s credit rating at “BB” with a negative outlook.

The Turkish economy is navigating out of a “sharp depreciation” of the lira, which “stemmed from the materialization of external financing vulnerabilities, aggravated by political and geopolitical developments, all areas of weakness for the sovereign credit profile” the rating agency said in a statement.

The lira tumbled as much as 47 percent against the dollar in August. Turkish President Recep Tayyip Erdoğan described the depreciation of the Turkish lira against the US dollar as “evidence of an attempted economic assassination.”

“The negative outlook reflects the significant and multifaceted risks to the adjustment path posed by economic policy settings, domestic political and geopolitical risks and global financing conditions” Fitch said.

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