Moody's stops short of Turkey ratings announcement

NEW YORK

Global rating agency Moody's on Friday avoided issuing a ratings statement for Turkey, saying its review of the country’s Baa3 rating remains ongoing.

The agency announced on July 18, three days after the defeated coup attempt in Turkey, that it began a "review for downgrade" of the country's credit rating.

In Friday's statement, Moody's said it would complete its review within 90 days of the July 18 announcement.

The statement said although the putsch failed, Moody's would continue to assess the medium-term effect of the crisis and its aftermath.

Speaking of the abortive coup, Moody’s said it "is likely that it will exacerbate existing challenges in" areas of Turkey's policy-making institutions and business climate, the country's external buffers to absorb potential shocks and its growth prospects.

Moody's has a number of typical dates in a yearly calendar on which it announces ratings statements on Turkey, including one in the first week of August which has now passed.

Aside from the conclusion of the ongoing three-month review, the only remaining date this year when the agency is expected to make a statement is Dec. 2.

The last time Moody's took a rating action on Turkey was last December, when it confirmed the country's rating at "Baa3" and its outlook as "negative."