International credit rating agency S&P Global Ratings (Standard & Poor's Ratings Services) has announced that it has revised its outlook on Turkey to negative from stable and affirmed its foreign and local currency sovereign credit ratings for Turkey at 'BB' and 'BB+', respectively.
S&P stated that the outlook revision reflects the rising constraints on policy makers' ability to tame inflationary and currency pressures, which could weaken the financial strength of Turkey's companies and banks, undermining growth, and fiscal outcomes, during a period of rising global interest rates.
S&P also stated that the Turkish central bank's monetary policy response to rising currency and inflationary pressures may prove insufficient to anchor its inflation targeting regime.