(Bloomberg) — 

• Downgrades reflect increased risks to performance, asset quality, capitalization, liquidity and funding profiles, following the recent period of market volatility and given increased risk of a hard landing for the economy and a material deterioration in investor sentiment
• In a statement Friday, Fitch forecasts GDP growth as 4.5% in 2018, 3.6% in 2019
• Downgrades of foreign-owned banks’ foreign currency IDRs to BB from BBB- reflect both the sovereign downgrade and Fitch’s view that it is no longer appropriate to rate banks above the sovereign in Turkey
  • “This view reflects our belief that, in case of a marked deterioration in Turkey’s external finances, the risk of government intervention in the banking sector in the form of capital controls or restrictions will increasingly be equal to that of a sovereign default”