The Ishares MSCI Turkey Inv Market Index Fd (NYSE:TUR) was falling again early Tuesday, following news that credit ratings giant Moody’s was considering downgrading Turkey’s rating to junk status.
Moody’s currently rates Turkey’s credit with a Baa3 rating, which is the lowest investment-grade rating the firm offers. Given the recent coup attempt, Moody’s said it will “assess the medium-term impact” of recent events. From Bloomberg
“The country’s slower-than-expected progress in materially advancing planned economic reforms, in the context of both weakening growth and external buffers, had been previously captured in Moody’s negative outlook,” the analysts wrote. “Although the coup failed, the event in itself will likely exacerbate challenges in all of these areas.”
As if the potential credit rating cut wasn’t enough, Wikileaks is promising to drop a bombshell on Erdogan’s establishment later today:
Following Monday’s huge drop
, TUR shares were down $0.12 (-0.31%) in premarket trading Tuesday to $38.88. Even with the huge drop, TUR has still gained more than 7% year-to-date. Given the huge amount of uncertainty within Turkey right now, however, don’t be surprised to see the recent losses continue to mount.