“There is significant downside risk to the growth forecast as the impact of the U.S. Fed tapering and the country’s political developments continue to unfold, potentially triggering further liquidity tightening and weakening of domestic demand,” Moody’s said.
While Turkey’s economy shows sign of weakness, it is highly irregular for a ratings firm to downgrade a country’s credit after raising it a year ago. Moody’s gave Turkey its first investment-grade rating in two decades in May , 2013, Bloomberg reported.
iShares MSCI Turkey ETF
For more information on Turkey, visit our Turkey category.
Max Chen contributed to this article.