Moody's downgrades Turkey rating to B1

Moody's cut Turkey's long-term credit rating by one level from Ba3 to B1. The outlook remains negative, the agency said in a statement. The rating downgrade is due to the growing risk of a balance of payments crisis, which also increases the risk of government insolvency. These risks are to some extent balanced by a large, diversified economy and a still moderate level of public debt, Moody's explained.

Moody's previously reduced the creditworthiness of Turkey, from Ba2 to Ba3, in August last year.

(PAP)