World Economy

Turkey Banks Downgraded

Turkey Banks DowngradedTurkey Banks Downgraded

S&P downgraded the ratings from “BB+” to “BB” for the Turkiye Is Bankasi AS, Garanti Finansal Kiralama A.S., Yapi ve Kredi Bankasi A.S., Turkiye Garanti Bankasi A.S. and the Turkiye Vakiflar Bankasi TAO, Sputnik reported. According to the agency, the downgrade is linked to the political situation in Turkey becoming more fragmented after the coup attempt on July 15. The agency may revise the outlook on the ratings of the five banks to stable in case of a similar revision in regard to Turkey’s sovereign rating. The coup took place in Turkey on July 15 and was suppressed the following day. Following the events, Turkish authorities introduced a state of emergency in the country, to last for a month and a half. On Wednesday, S&P downgraded Turkey’s rating to “BB” from “BB+” saying that the attempted coup has eroded the country’s institutional checks and balances.