Moody’s: Negative outlook for Turkish firms

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Ratings agency Moody’s said the outlook for Turkish non-financial companies will remain negative for the next 12-18 months, Dünya newspaper reported.

Ahvalnews quoted Dünya as saying that Lira volatility was likely to remain high and tight financing conditions will persist.

Moody’s said in a report, that there was also limited clarity concerning government policies, it said.

The profit margins of Turkish companies are under pressure after a currency crisis ripped through the economy this year, making imported raw materials less affordable and increasing the cost of foreign currency-denominated loans.

Firms in the country are saddled with more than $200 billion of long-term, unhedged borrowing in foreign exchange, according to central bank data. The lira has lost almost a third of its value this year.

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