The bad news just keeps piling on for Turkey
- Sharp fall in Turkish lira heightens risks for Turkish banks
- Could see a marked reduction in banks' ability to refinance
- Also protracted large deposit outflows and significantly deteriorating asset quality
- All of that could lead to further negative rating actions
Do note that Fitch just downgraded Turkey to 'BB' in July, and revised the outlook to negative. That was of course followed by Moody's downgrading Turkey to 'Ba3' from 'Ba2' - also revising outlook to negative - and S&P downgrading Turkey to 'B+' from 'BB-' two weeks ago.
Fitch's next rating review on Turkey will be on 14 December.
