Turkish Markets Plunge After Moody's Cuts Country's Rating to Junk
- Stocks post biggest drop globally, lira heads for two-week low
- Moody’s downgraded the country’s credit score one level to Ba1
Lira Falls After Turkey Credit Downgrade
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Turkish assets plummeted the most since an attempted coup in July and credit risk climbed after Moody’s Investors Service cut the country’s sovereign rating to junk.
The currency was headed for the the lowest level in two weeks as of 4:23 p.m. in Istanbul, the Borsa Istanbul 100 Index posted the steepest decline among about 90 gauges tracked by Bloomberg globally, and the nation’s dollar debt due 2026 sank the most since July. Moody’s lowered Turkey’s sovereign rating one level to Ba1 late Friday, the highest non-investment grade, citing rising risks due to its external financing needs and slowing economic growth.