S&P Global Ratings, though, already lowered the country’s’ credit rating to two steps below investment-grade and warned that increased political uncertainty could continue to push off investors and undermine fiscal management.
SEE MORE: Assessing the Lone Turkey ETF as it Tries to Rebound
“If two of three ratings agencies rate Turkey’s debt below investment-grade, selling pressure would result from funds that are mandated to avoid so-called “junk” bonds,” according to Barron’s.
Earlier this month, Turkey’s central bank lowered interest rates by 25 basis points to 8.75% and said it stands ready to provide liquidity to the country’s banks, if needed, an important factor considering TUR’s weight to financial services stocks is almost 44%, or more than triple the ETF’s second-largest sector allocation.
For more information on the Turkish markets, visit our Turkey category.
iShares MSCI Turkey ETF
