S&P cuts Turkey’s debt rating on deteriorating finances, inflation

Washington (AFP) – Ratings agency S&P said Tuesday it cut the rating on Turkey’s foreign debt due to deteriorating finances and rising inflation.

The grade on the country’s foreign currency debt dropped to ‘BB-/B’ for long- and short-term issues respectively, but with a stable outlook, S&P said in a statement.

“Our downgrade reflects our view that there is a risk of a hard landing for Turkey’s overheating, credit-fueled economy,” the agency said.