World famous Rating Agency "Standard and Poor's" downgraded Turkey's credit, and cited "concerns" about the situation of the Turkish Economy, whose current accounts' Deficit is large, Exports accounting only for a small part of its GDP (less than 24%), making Ankara "highly Dependent on Short-term Financing from Outside Turkey".
In consequence, Turkey became particularly Vulnerable to sudden ReFinancing Risks, and sudden Financial accounts' Outflows, S&P warned, expressing also concerns about Turkish Government's Debt.
Particularly when several Structural Weaknesses of the Turkish Economy, continue to put pressure to its outlook, it added, keeping a "BB" note for Turkey's devices, (which practically means that "it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions, which could lead to .... inadequate capacity to meet its financial commitments").
The Turkish Government expected that Growth will Fall from 7% downwards to 4% this year, but S&P forecasts that Growth will be even Lower : only 2% in 2012.
Moreover, the IMF warned Turkey against rising Inflation, while consumer Prices rose + 11,1% from the beginning of this year up to April.
Turkish Prime Minister Erdogan angrily replied that Turkey does "not recognize", no more, "Standard & Poor's" "as a Rating Agency"....
(Source : AP+).