7/12, 10:51 PM (Source: TeleTrader)
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Fitch lowers Turkey's rating to BB- from BB

A negative outlook was assigned by Fitch to Turkey, which on Friday pushed the country's grade deeper into so-called junk. The rating was slashed to BB- from BB before the update scheduled for November 1 as President Recep Tayyip Erdogan fired Murat Cetinkaya, head of the central bank, the agency said. Authors of the report expressed doubt in the state's "tolerance for a period of sustained below-trend growth and disinflation" which they said was consistent with a desired overhaul of the economy.

The credit appraiser stressed the said issue may impact "institutional independence and economic policy coherence and credibility" regardless of the end of "a prolonged electoral cycle in June," which had a favorable effect. Cetinkaya's dismissal hurts confidence and may hamper capital inflows, according to the update.

Fitch also highlighted excessive inflation and the dispute with the United States over the purchase of the Russian S-400 anti-aircraft system.

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