"We consider that Turkish banks are particularly vulnerable to negative market sentiment, increased risk aversion, reductions in global liquidity, and higher financing costs," S&P's analysts wrote in a note.
The country's banks also remain significantly exposed to the
unwinding of economic imbalances built up in recent years, such
as a surge in real estate prices and highly accommodative
monetary policy amid hyperinflation
Lira weakness also weighs on the credit worthiness of
Turkish firms, the agency added.
(Reporting by Karin Strohecker, editing by Marc Jones)
