Turkey's Credit Rating Has Just Been Downgraded To 'Junk'

A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York, February 6, 2013. PHOTO: REUTERS/BRENDAN MCDERMID

Reuters: Moody's cuts Turkey's credit rating to 'junk' after coup

Ratings agency Moody's cut Turkey's sovereign credit rating to "junk," citing worries about the rule of law after an attempted coup and risks from a slowing economy, in a move that could deter billions of dollars of investment.

Turkey depends on investment flows to fund its current account deficit - one of the biggest in the G20 - and service its foreign debt. Ratings downgrades could force it to pay more to borrow money in international markets.

Prime Minister Binali Yildirim said the action, which came late on Friday, showed Moody's was not being impartial nor basing its rating solely on economic factors.

"We don't believe that these assessments are highly impartial. We believe they are attempting to create a certain perception of the Turkish economy," he told reporters.

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WNU Editor: Turkey's president says that he does not care about the downgrade .... Erdogan doesn’t care if Turkey gets junk credit rating (RT) .... but he should. This downgrade is going to make it very expensive for Turkey to borrow money at any time in the near future.

More News On Turkey's Credit Rating Being Downgraded To 'Junk'

Moody's Downgrades Turkey's Issuer And Bond Ratings To Ba1 With A Stable Outlook -- Moody's
Moody's Downgrades Turkey's Credit Rating to 'Junk' Status -- AP
Turkey Cut to Junk as Moody’s Concludes Its Post-Coup Review -- Bloomberg
Turkey does not believe ratings agencies are impartial - PM -- Reuters