Moody's May Cut Turkey To Junk Status On Failed Coup

Moody's Investors Service on Monday placed Turkey's Baa3 credit rating on review for a possible downgrade, raising the possibility that the country could lose its investment grade status in the wake of the failed power grab over the weekend. "Despite the coup's failure, Moody's considers its occurrence a reflection of broader political challenges, as associated credit risks remain elevated," said Moody's in a statement. The political upheaval adds to the challenges that the country faces in pushing ahead with economic reforms, it said. Baa3 is the lowest of investment grade ratings and any downgrade will push the country into junk status, increasing the cost for Turkey to borrow funds.