Ratings agency Moody's has cut Turkey's key bond ratings to what is effectively junk status, citing risks including slowing economic growth.
S&P Global Ratings downgraded Turkey in July, following a failed coup attempt in the country, and now only Fitch remains as a major agency keeping Turkey above junk.
"Moody's expects growth will slow over the coming years, as constraints on the externally-funded, consumption-fuelled economy emerge, the reform agenda slows further and the investment climate remains weak," the agency said in a statement.
"The risk of a sudden, disruptive reversal in foreign capital flows, a more rapid fall in reserves and, in a worst-case scenario, a balance of payments crisis has increased," Moody's said, also citing concerns over "institutional strength".
Even prior to the coup attempt, Turkey's tourism sector was badly battered by both terrorism concerns and a diplomatic row with Russia. There are overall signs of a slowdown in Turkey's economy and growth is expected to come in under potential.
