Fitch reaffirms Turkey's junk rating with no change in outlook

Ratings agency Fitch on Friday reaffirmed Turkey's sovereign rating at 'BB', while leaving its 'negative' outlook unchanged as it forecasts the economy to contract by 1.1 percent in 2019.

The rating and outlook reflect Turkey's weak external finances, high inflation, low foreign reserves and high net external debt, political and geopolitical risks, Fitch said.

The agency said that while political and geopolitical risks weigh on Turkey's ratings, the sovereign's growth should revive in 2020.

Lira weakened again last week due to concerns around Istanbul elections and strains in relations with the United States.