Moody's says lira weakness credit negative for Turkey's sovereign rating

ISTANBUL: Chronic weakness in Turkey's lira currency was credit negative for its sovereign debt rating and problematic for the economy, Moody's said on Monday, citing the high degree of external vulnerability and low foreign-exchange reserves.

In a credit outlook report, Moody's said the lira was susceptible to renewed pressure if authorities delay in following up on promises to take action to combat lira weakness with interest rate hikes.