(Bloomberg) — S&P Global Ratings cut Turkey’s local currency credit rating further into junk, while keeping a negative outlook on the country and affirming the foreign currency score.
The company lowered Turkish debt’s local-currency rating by one notch to B+, four levels below investment-grade, citing the impact of soaring energy prices from Russia’s war in Ukraine. It kept the foreign currency score at B+, on par with Bahrain and Bolivia.
“The fallout of the Russia-Ukraine military conflict, including rising food and energy prices, will further weaken Turkey’s already tenuous balance of payments and exacerbate inflation,” S&P said in a statement Friday. “The latter is on course to average 55% in 2022, the highest level of all the sovereigns we rate.”
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