Fitch downgrades Turkey's credit rating

Turkey's soft financial policy may fix inflation rate at a high level, according to the report of Fitch Ratings.

According to Fitch Ratings analysts, such a policy may exacerbate the consequences of weakening Turkish lira and high inflation rate for public finances and result in pressure on the international reserves.

"The anti-inflationary measures taken by the Turkish government will not mitigate macroeconomic risks, as well as the risks to the financial stability," the report says.

Fitch Ratings downgraded Turkey's long-term foreign and local currency issuer default ratings (IDRs) from 'BB-' to 'B+'. The rating outlook is "negative".

Turkey's current ratings are four levels below the investment grade.