S&P lowers Turkey's credit rating deeper into junk territory

By	Scotia Wealth- The Zukiwsky Group

By Scotia Wealth- The Zukiwsky Group

Cuts its debt grade for the second time in 4 months.

Standard & Poor's said it lowered the country's long-term foreign currency sovereign credit rating to 'B+' from 'BB-' while maintaining the outlook at stable.

"Turkish lira and the resulting projected sharp balance of payments adjustment will undermine Turkey's economy", said the ratings agency.

Turkish lira has lost almost 40 percent of its value against the dollar this year, hit by both the diplomatic rift and investor alarm about President Tayyip Erdogan's influence over monetary policy. It came amid a diplomatic row with the U.S. over Turkey, led by autocratic President Recep Tayyip Erdogan, detaining a USA preacher. S&P Global also projected the Turkish economy to sink into a recession in 2019 even as inflation accelerates to 22% in the next four months.

It said the plunging lira will increase the risk for Turkey's banks and make it "increasingly burdensome" for Turkish firms to finance currency debt.

Egypt says plane hijacker extradited from Cyprus
The 61-year-old had previously challenged extradition on the grounds that he could face torture or an unfair trial in Egypt . Nicolaou said the extradition went ahead after Mustafa dropped a three-year court battle to avoid extradition.

The company added that despite heightened economic risks, it believes the policy response from Turkey's monetary and fiscal authorities "has so far been limited".

The dispute and war of words between Trump and Turkey's President Recep Tayyip Erdogan has escalated over Ankara's jailing of American evangelical pastor Andrew Brunson since October 2016, who Trump has termed a "hostage".

The economic turmoil in Turkey has also been exacerbated by renewed political tensions with the US over the detainment of the American pastor Andrew Brunson who's on trial for espionage and terror-related charges connected to a failed coup attempt in the country two years ago.

Turkey fired back threatening to respond to any additional USA action.

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