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Rating agency Moody's downgrades Turkey's outlook to 'negative'

Published on Apr 11, 2014 2:35 PM

PARIS (AFP) - Moody's rating agency on Thursday downgraded its outlook on Turkey to "negative", putting the country's investment-grade rating at risk, saying political uncertainty was affecting investor confidence and casting doubt over further reforms.

The agency reaffirmed the country's current bond rating of Baa3, just one step above a so-called 'junk' level, which is out of bounds for many pension and savings funds seeking safer investments.

The move piles more pressure on Prime Minister Recep Tayyip Erdogan, who has made a turnaround in Turkey's economic fortunes a keystone of his 11-year rule.

Turkey's strongman has faced increasing pressure for nearly a year, after huge demonstrations against his rule, which critics say has grown increasingly authoritarian, erupted in the country in June 2013, sparked by redevelopment plans for a green space in Istanbul.

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