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Analysts at TD Securities point out that today Fitch is due to review Turkey’s BB+ (stable) rating and will be important for Turkish markets as Fitch has the highest rating of the three agencies – S&P has BB- (stable) and Moody’s Ba2 (on review for downgrade).

Key Quotes

“In the run-up to the June elections, Fitch warned that Turkey’s rating could come under pressure if the central bank’s independence is curtailed. The new minister of treasury and finance, Berat Albayrak, has tried to assure markets that the CBRT is, and will remain, independent. However, the fact is that the appointment of the governor and deputy governors is now largely in the hands of President Erdogan. This, combined with rising inflation and continued lira weakness, could prompt Fitch to move the outlook to negative.”