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Fitch revises Turkey's outlook to 'negative'

Credit: REUTERS/MURAD SEZER

Ratings agency Fitch revised Turkey's outlook to 'negative' from 'stable' on Friday, citing depleting foreign exchange reserves, weak monetary policy credibility and a sizeable current account deficit among factors that have exacerbated external financing risks.

Aug 21 (Reuters) - Ratings agency Fitch revised Turkey's outlook to 'negative' from 'stable' on Friday, citing depleting foreign exchange reserves, weak monetary policy credibility and a sizeable current account deficit among factors that have exacerbated external financing risks. The agency affirmed the country's sovereign ratings at 'BB-'.

"Political pressures, the limited independence of the Central Bank of the Republic of Turkey (CBRT), and a track record of being slow to respond to events, increase the risk that policy is tightened insufficiently," Fitch said in a statement.

(Reporting by Mehr Bedi in Bengaluru; Editing by Shinjini Ganguli)

((Mehr.Bedi@thomsonreuters.com;))

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