Fitch downgrades several Turkish companies

Fitch Ratings downgraded the debt ratings of several Turkish companies today. 

Among those affected were the glass manufacturer Sisecam, the pension fund OYAK, the household appliances maker Arcelik, the telecommunication firms Turk Telecom and Turkcell, the real estate developer Emlak Konut, Pegasus Airlines, and a group of assets held by Turkish Airlines, Fitch said in a press release. 

The companies are now in the BB and B range of Fitch’s ratings scale, which indicates more risk of default of payments. The New York-based credit rating agency evaluates an entity’s ability to pay back its debt. 

Last week, Fitch downgraded the Turkish government as a whole to a B+, citing high inflation and a lack of confidence in policymakers to improve the situation. 

Turkey is in the midst of an economic crisis, marked by high inflation and price hikes. Turkish President Recep Tayyip Erdogan has stubbornly insisted that lower interest rates yield low inflation, bucking conventional economics. This has led much popular discontent with his policies, including among his supporters in the business community.