Turkey's rejection of Moody's downgrade won't make it go away
Officials in Istanbul are dismissing a downgrading of Turkey's credit rating as part of a plot against the country, as the economy heads for troubled times.
Turkey can't escape the impact of a Moody’s Investors Service downgrade simply by dismissing the report — but it's trying.
On March 7, Moody's broke the bad news: It was downgrading Turkey's credit rating to Ba2 from Ba1; both are considered "junk" status. The outlook for the designation was listed as stable, meaning the poor rating is unlikely to change anytime soon. In addition, Moody’s downgraded the long-term senior unsecured debt rating of the Treasury’s Asset Leasing entity, which handles sukuk lease certificates (Islamic bonds), to Ba2 from Ba1.
